Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Solved Assignments
Asked Questions
Answered Questions
Prove that when both countries are producing both goods, the world can be made better off by allowing England and Portugal to reallocate labor and trade in accordance with the patter of comparative
In the light of the Ricardian model, how might you evaluate the claim by developing countries that they are at a disadvantage in trade with powerful industrialized countries?
Does either country have absolute and/or comparative advantage in any product? Provide support for your answer by computing the "resource costs" or opportunity costs for both products in both countr
How can this concept be applied to the activities of profit making companies and profit loosing companies or to the revenue and costs components of a firm's net profit
Answer the next question on the basis of the following production possibilities data for Landia and Scandia: Refer to the above data. What would be feasible terms of trade between Landia and Sca
Explan the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with
Ignoring the mathematics, explain the operation of the Krugman model in economic terms and indicate its principal lessons.
Which of the following statements correctly distinguishes capitalism from socialism?
Question 1: Explain absolute and comparative advantage for India and Nepal. Question 2: If each country has 1000 person-days of labour, construct each country's production-possibility curves.
Assume Nebraska and Virginia each have 100 acres of farmland. The following table gives hypothetical figures for yield per acre in the two states:
Problem 1: Construct a quantitative example to illustrate the principle of comparative advantage. Problem 2: What are dynamic effects of free trade and why might they be important?
Define the concept of comparative advantage. How can a country gain or lose its comparative advantage in the production of a good?
Two individuals are having a picnic. Jane brings 8 litres of soft drinks and 2 sandwiches. Bob, on the other hand, has 2 litres of soft drinks and 4 sandwiches. With these endowments, Jane's margina
Question 1. How do changes in interest rates, inflation, productivity, and income affect exchange rates? Question 2. Is a strong U.S. dollar always good for the U.S. economy? Why or why not?
a. What is the opportunity of producing a unit of wheat in the United Kingdom? In the United States? b. Which country has an absolute advantage in producing wheat? In producing cloth?
Describe how international trade affects our economy. How the concept of comparative advantage was relevant to the trade negotiations? You may use the following scenarios in your discussions.
Question 1. How does trade affect the production possibilities frontier? Question 2. Give an argument for or against trade. Explain your reasons.
Define and explain the difference between absolute advantage and comparative advantage. What is the significance of each in international trade processes?
Problem: Describe how comparative advantage is relevant for trade and how even when a country has an absolute advantage in both goods it can still gain from trade.
Economists strongly support which of the following arguments in favor of protectionism?
Assume the US can produce Toyotas at the cost of $18,000 per car and Chevrolets at $16,000 per car. In Japan, Toyotas can be produced at 1,000,000 yen and Chevrolets at 500,000 yen. In terms of Chev
Question 1. Is Wal-Mart too big? Or should it be allowed to grow even bigger because of its benefits to us? Why? Question 2. Explain comparative advantage and why it is good for us.
Suppose that the United States can produce 500 million barrels of oil or 200 million pairs of tennis shoes a day. Egypt can produce 750 million barrels of oil or 300 million pairs of tennis shoes a
As the French franc appreciates in value relative to the U.S. dollar, what happens to the price of U.S. goods in France? What happens to the price of French goods in the U.S.?
The static gains from trade are usually expressed in terms of comparative advantage. How, according to the theory of comparative advantage, do nations that open themselves to trade benefit?