Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 33, Problem 4SCQ
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera.
- Who has the
absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? - Calculate the
opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has acomparative advantage in the production of televisions? - Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras?
- In this example, is absolute advantage the same as comparative advantage, or not?
- In what product should Germany specialize? In what product should Poland specialize?
Expert Solution & Answer
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Students have asked these similar questions
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland it takes six workers to make one television and 12 workers to make one video camera.
Calculate the opportunity cost of producing one additional television set in Germany and in Poland. (Your calculation may involve fractions, which is fine.) Which country has a comparative advantage in the production of televisions?
Germany
Both Poland and Germany
Poland
Neither Poland or Germany
Suppose that Country A and Country B can produce the following numbers of Chairs
and Printers per worker per day. Which of the following is true?
Country A Country B
25
Chairs
10
Printers
4
Country B has Absolute Advantage (in both products), and Country A has
Comparative Advantage in Printers.
Country A has Absolute Advantage (in both products), and Country B has
Comparative Advantage in Printers.
Country A has Absolute Advantage (in both products), and Country A has
Comparative Advantage in Printers.
Country B has Absolute Advantage (in both products), and Country B has
Comparative Advantage in Printers.
Steel
50
25
0
25
50
Chemicals
Italy
1 ton of steel for 1/2 ton of chemicals.
1 ton of steel for 1/3 ton of chemicals.
1 ton of steel for 1 ton of chemicals
Steel
1 ton of steel for 2 tons of chemicals.
30
20
0
20
Italy and Greece are the only two economies in the world and they can produce steel or chemicals.
The production possibilities curves for the two countries are shown in the graphs. What is the cost
ratio for Greece?
Chemicals
Greece
60
Chapter 33 Solutions
Principles of Economics 2e
Ch. 33 - True or False: The source of comparative advantage...Ch. 33 - Brazil can produce 100 pounds of beef or 10 autos....Ch. 33 - In France it takes one worker to produce one...Ch. 33 - In Germany it takes three workers to make one...Ch. 33 - How can there be any economic gains for a country...Ch. 33 - Table 33.15 shows how the average costs of...Ch. 33 - If the removal of trade banters is so beneficial...Ch. 33 - What is absolute advantage? What is comparative...Ch. 33 - Under what conditions does comparative advantage...Ch. 33 - What factors does Paul Krugman identity that...
Ch. 33 - Is it possible to have a comparative advantage in...Ch. 33 - How does comparative advantage lead to gains from...Ch. 33 - What is intra-industry trade?Ch. 33 - What are the two main sources of economic gains...Ch. 33 - What is splitting up the value chain?Ch. 33 - Are the gains from international trade more likely...Ch. 33 - Are differences in geography behind the...Ch. 33 - Why does the United States not have an absolute...Ch. 33 - Look at Exercise 33.2. Compute the opportunity...Ch. 33 - You just overheard your friend say the following:...Ch. 33 - Look at Table 33.9. Is there a range of trades for...Ch. 33 - You just got a job in Washington, D.C. You move...Ch. 33 - Does intra-industry trade contradict the theory of...Ch. 33 - Do consumers benefit from intra-industry trade?Ch. 33 - Why might intra-industry trade seem surprising...Ch. 33 - In World Trade Organization meetings, what do you...Ch. 33 - Why might a low-income country put up barriers to...Ch. 33 - Can a nations comparative advantage change over...Ch. 33 - France and Tunisia both have Mediterranean...Ch. 33 - In Japan, one worker can make 5 tons of rubber or...Ch. 33 - Review the numbers for Canada and Venezuela from...Ch. 33 - In Exercise 33.31, is there an ask where...Ch. 33 - From earlier chapters you will recall that...Ch. 33 - Consider two countries: South Korea and Taiwan....Ch. 33 - If trade increases world GDP by 1 per year, what...
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