The comparative advantage argument in free trade a

This preview shows page 22 - 26 out of 63 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 15
Exploring Microeconomics
Sexton
Expert Verified
76. The comparative advantage argument in free trade A. ignores the cost of readjustment. B. is a short-run argument. C. only works for two goods at a time. D. none of the above
77. If you can make a good at a low opportunity cost,
78. A country like North Korea
1-22
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 15
Exploring Microeconomics
Sexton
Expert Verified
Chapter 01 - Globalization and the Multinational Firm The table below shows the bushels of wheat and the bottles of beer that North and South Dakota can produce per day of labor under two different hypothetical situations (Cases I and II). 79. Which state has an absolute advantage in producing wheat in Case I?
80. Which state has an absolute advantage in producing beer in Case I? A. South Dakota B. North Dakota C. Neither state
81. Which state has an absolute advantage in producing beer in Case II?
82. Which state has a comparative advantage in producing wine in Case II?
1-23
Chapter 01 - Globalization and the Multinational Firm 83. Which state has a comparative advantage in wheat production in Case I?
84. Which state has a comparative advantage in wheat production in Case II? A. South Dakota B. North Dakota C. Neither state
85. What is the relative price of wheat in North Dakota prior to trade in Case II?
86. For case II, in what range must the "international" price of wheat fall? i.e. if North and South Dakota trade only with each other, what is the range of prices possible?
1-24
Chapter 01 - Globalization and the Multinational Firm

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture