yout References Mailings he Internet can contain viruses I View. Enable Editing u'll need to renew your subscription Renew 1. Specialization and production possibilities Suppose Bulgaria produces only air fryers and pressure cookers. The resources that are used in the production of these two goods are not specialized- that is, the same set of resources is equally effective at producing both pressure cookers and air fryers The shape of Bulgaria's production possibilities frontier (PPF) should reflect the fact that as Bulgaria produces more pressure cookers and fewer air fryers, the opportunity cost of producing each additional pressure cooker DECREASE S/INCREASE S/REMAINS CONSTANT The following graphs show two possible PPPs for Bulgaria's economy: a straight-line PPF (PPF1PPF1) and a bowed-out PPF (PPF2PPF2).careful- files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enable Editing create or edit files, you'll need to renew your subscription Renew Graph Graph 2 PPF. PPF 2 AIR FRYERS AIR FRYERS PRESSURE COOKERS PRESSURE COOKERS Based on the previous description, the trade-off Bulgaria faces between producing pressure cookers and air fryers is best represented by GRAPH 1 OR GRAPH 2 2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. Zucchini Watermelon (Pounds per acre) (Pounds per acre) Elijah 28 Aneesha 18 Focusneed to edit it's s tected View Enable Editing it files, you'll need to renew you pressure cookers and air ers is best represented by GRAPH 1 OR GRAPH 2 2. Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini of watermelon or to produce zucchini on some of the land and watermelon on the rest. Zucchini Watermelon (Pounds per acre) (Pounds per acre) Elijah 28 Aneesha 18 ANEESHA OR ELIJAH has an absolute advantage in the production of zucchini, and ANEESHA OR ELIJAH "has an absolute advantage in the production of watermelon. Elijah's opportunity cost of producing 1 pound of watermelon is pounds of zucchini, whereas Aneesha's opportunity cost of producing 1 pound of watermelon is pounds of zucchini, Because Elijah has a HIGHER OR LOWER opportunity cost of producing watermelon than Aneesha, ANEESHA OR ELIJAH has a comparative advantage in the production of watermelon, and ANEESHA OR ELIJAH has a comparative advantage in the production of zucchini.our subscription Renew 3. The price of trade Suppose that Hungary and Slovakia both produce olive oil and wheat. Hungary's opportunity cost of producing a bushel of wheat is 6 crates of olive oil while Slovakia's opportunity cost of producing a bushel of wheat is 11 crates of olive oil. By comparing the opportunity cost of producing wheat in the two countries, you can tell that SLOVAKIA OR HUNGARY has a comparative advantage in the production of wheat and SLOVAKIA OR HUNGARY has a comparative advantage in the production of olive oil Suppose that Hungary and Slovakia consider trading wheat and olive oil with each other Hungary can gain from specialization and trade as long as it receives more than 1 CRATE. 6 CRATES OR 11 CRATES of olive oil for each bushel of wheat it exports to Slovakia. Similarly, Slovakia can gain from trade as long as it receives more than 1/11 BUSHEL, 1/6 BUSHEL. 1 BUSHEL. OR 11 BUSHELS of wheat for each crate of olive oil it exports to Hungary! based on your answer to the last question, which of the following prices of trade (that is, price of wheat in terms of olive oil) would allow both Slovakia and Hungary to gain from trade? Check all that apply. 1 crate of olive oil per bushel of wheat 10 crates of olive oil per bushel of wheat 5 crates of olive oil per bushel of wheat 1 7 crates of olive oil per bushel of wheat 4. Problems and Applications 06 The following table describes the production possibilities of two cities in the country of FocusComments from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected View. Enable Editing ate or edit files, you'll need to renew your subscription Renew 4. Problems and Applications Q6 The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker \\Pairs of White Socks per Worker per Hour per Hour Boston 6 Chicago Without trade, the price of a pair of white socks (in terms of red socks) in Boston is /2 PAIR. 2 PAIRS. 4/5 PAIR. 1 74 PAIRS | of red socks, and in Chicago it is 1/2 PAIR, 2 PAIRS, 4/5 PAIR, 1 % PAIRS of red socks BOSTON OR CHICAGO has an absolute advantage in the production of red socks, and BOSTON OR CHICAGO has an absolute advantage in the production of white SOCKS. FocusIn viruses. Unless you need to edit, it's safer to stay in Protected View. Comments ate or edit files, you'll need to renew your subscription Enable Editing Renew BOSTON OR CHICAGO has an absolute advantage in the production of red socks, and BOSTON OR CHICAGO has an absolute advantage in the production of white socks BOSTON OR CHICAGO has a comparative advantage in the production of red socks, and BOSTON OR CHICAGO _has a comparative advantage in the production of white socks If the cities trade with each other, Boston will export WHITE OR RED socks, and Chicago will export WHITE OR RED socks. The price of white socks can be expressed in terms of red socks. The highest price at which white socks can be traded that would make both cities better off is 12 PAIR. 2 PAIRS, 4/5 PAIR. 1 14 PAIRS of red socks per pair of white socks, and the lowest price that makes both cities better off is 12 PAIR, 2 PAIRS, 4/5 PAIR. 1 1/4 PAIRS of red socks per pair of white socks. 5. Problems and Applications Q9 Indicate whether each of the following statements is true or false. Statement True False Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some goods 2. The gains from specialization and trade are based on absolute Focus advantanenew Indicate whether each of the following statements is true or false. Statement True False Two countries can gain from specialization and trade as long as they have different opportunity costs in the production of some goods. 2. The gains from specialization and trade are based on absolute advantage. C C 3. If a certain trade is good for one country, it must be good for the other country 4. Two individuals can benefit from trade even if neither has a C comparative advantage in some activity, c 5. Workers in import sporting industries are likely to oppose trade. 6. Effects of a tariff on international trade "The following graph shows the domestic demand for and supply of oranges in Guatemala, The world price (PVPW) of oranges is $550 per ton and is displayed as a horizontal black line, I hroughout the question, assume that all countries undered to edit. it's safer to stay in Protected View. Enable Editing les, you'll need to renew your subscription Renew consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 830 Domestic Demand Domestic Supply 795 760 725 390 655 PRICE (Dollars per ton) 620 585 550 515 480 150 200 250 300 350 400 450 500 O 50 100 QUANTITY (Tons of oranges) FOCUSPRICE (Dollars per ton) 620 585 550 515 450 50 100 150 200 250 350 400 450 500 QUANTITY (Tons of oranges) If Guatemala is open to international trade in oranges without any restrictions, it will import tons of oranges. Suppose the Guatemalan government wants to reduce imports to exactly 200 tons of oranges to help domestic producers. A tariff of per ton will achieve this. A tariff set at this level would raise in revenue for the Guatemalan government. 7. Free-trade benefits here are a number of good outcomes associated with international trade for an economy in addition to the positive welfare effects from free trade. Consider the following situation FOCUSneed to renew your subscription ted View. Enable Editing LO View Renew Because of international trade, poorer countries are able to learn about technological advances made by other countries rather than investing scarce resources in developing advanced technology themselves. I The scenario described above represents which of the following benefits of free trade? Increased competition An enhanced flow of ideas Increased variety of goods Lower costs through economies of scale 8. The arguments for restricting trade Suppose there is a policy proposal to increase trade restrictions on imported axles to the United States. Read the following scenario and answer the question that follows. A congresswoman from a state with several axle factories argues that the government should impose a tariff on axles because they are a necessary input into the production of various weapons. Free trade, she contends, would make the United States overly dependent on foreign countries for the supply of axles and thus, in case of war, unable to make enough weapons to defend itself. Which of the following justifications is the congresswoman using to support their argument in favor of the trade restriction on axles? National-security argument FocusSearch A alexisfgr400@gmail.com A esign Layout References Mailings Revi View Help Comments files from the Internet can contain viruses. Unless you need edit in Protected View. Enable Editing edit files, you'll need to renew your subscription Renew Read the following scenario and answer the question that follows. A congresswoman from a state with several axle factories argues that the government should impose a tariff on axles because they are a necessary input into the production of various weapons. Free trade, she contends, would make the United States overly dependent on foreign countries for the supply of axles and thus, in case of war, unable to make enough weapons to defend itself. Which of the following justifications is the congresswoman using to support their argument in favor of the trade restriction on axles? National security argument Unfair-competition argument Infant-industry argument Using-protection-as-a-bargaining-chip argument Jobs argument 9. Problems and Applications Q4 For each of the following statements, indicate which argument for restricting trade is being utilized.In Protected View. Enable Editing or edit files, you'll need to renew your subscription Renew The The The Protection- National- Infant- The Unfair- as-a- The Jobs Security Industry Competitio Bargaining Argumen Argumen Argumen n -Chip Statements Argument Argument (A) We should place a tariff on the importation of oil and instead produce it domestically to avoid overdependenc e on foreign C C supply- (B) We should place a tariff on Chinese-made tires to help prevent domestic tire Focus employeesLayout References alexisfgr400@gmail.com A Mailings Review View Help Comments ul-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing e or edit files, you'll need to renew your subscription Renew domestically to avoid overdependenc e on foreign I supply C (B) We should place a tariff on Chinese-made tires to help prevent domestic tire employees from being laid C off (C) We should subsidize our computer industry because China subsidizes its computer C industry. FocusComments 60 Viewing contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing create or edit files, you'll need to renew your subscription Renew The The The I Protection- National- Infant- The Unfair- as-a- The Jobs Security Industry Competitio Bargaining Argumen Argumen Argumen n -Chip Statements t t Argument Argument (D) We should limit the importation of French wine unless France lifts its quota on our agricultural C C C . imports. 10. Problems and Applications Q7 For each of the following statements, indicate whether it is true or false for a country that exports a good abroad. True False Statement C C The greater the elasticity of supply, the greater the gains from trade. If supply is perfectly inelastic, the fall in consumer surplus would C C Focus Cancelalexisfgr400@gmail.com A Review View Help Al files. e Internet can contain viruses. Unless you need howyouto edit it's Com afer to stay in Protected View. Enable Editing or edit files, you'll need to renew your subscription Renew MESS France lifts its quota on our agricultural imports. I 10. Problems and Applications 07 For each of the following statements, indicate whether it is true or false for a country that exports a good abroad, Statement True False The greater the elasticity of supply, the greater the gains from trade If supply is perfectly inelastic, the fall in consumer surplus would exceed the rise in producer surplus Producers can still benefit from trade even if supply is perfectly inelastic