The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions.
a. ___________has an absolute advantage in the production of?hats, and _______________has an absolute advantage in the production of beer.
b. ____________ has a comparative advantage in the production of? hats, and____________ has a comparative advantage in the production of beer.
c. Suppose that Chile and Argentina currently do not trade with each other. Each has? 1,000 hours of labor to use for producing hats and? beer, and the countries are currently producing the amounts of each good shown in the table below. Using this? information, give a numerical example of how Chile and Argentina can both gain from complete specialization and trade. Assume that after trading? begins, one hat can be exchanged for one barrel of beer. Hats beer chile 9000 600 Argentina 600 800
Complete the table below. The table represents the amount of hats and beer after trading for each country hats beer chile ________ 600 Argentina 600 _______
Ans:
a. Chile; chile
b. Chile; argentina
c. 9400; 1400
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The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero. B) the triangle ABE. C) the triangle BCE. D) the triangle ACE. E) the triangle BCE minus the triangle ABE.
The demand curve in its home market is P = 200 - Q; the demand curve in its foreign market is P = 160 - 2Q; and its marginal cost is a constant $20 per unit. What is the discriminating monopolist's price in the domestic market?
a. $90 b. $110 c. $70 d. $35
China has roughly how much of the world's population?
A. 40 percent. B. 30 percent. C. 20 percent. D. 10 percent.
All points inside the production possibilities curve indicate
A. the law of increasing relative cost. B. inefficiency in production. C. a lack of sufficient supply. D. the law of decreasing relative cost.