February 27, 2015

Homework Help: Economics *Micro

Posted by SadBob on Saturday, February 14, 2009 at 10:20pm.


Computer Wine
x Y
Qc Qw
Country mil mil gal
US 60 240
France 33 1/3 200

Assuming that without trade,
-the US Produces 30 million computers, and
- France produces 80 million gallons of wine.

Also assuming that
-both countries will completely specialize in the good in which they have a comparative advantage,
-they will trade with one another using the following terms of trade:
1 computer = 5 gallons of wine,
-the US has 120 million gallons of wine to consume after trade.
Which of the following statements is true?
a. Without trade, France will produce 30 million computers.
b. The US will specialize in wine and produce 120 million gallons of wine.
c. After specialization and trade, France will have 100 million gallons of wine and 20 million computers to consume.
d. After specialization and trade, the US will have 120 million gallons of wine and 36 million computers to consume.

Answer this Question

First Name:
School Subject:

Related Questions

Microeconomics - 1. A country's consumption possibilities frontier can be ...
Public Finance - A corporation has $7 mil. in equity. During the tax year it ...
Economics International Trade - Heckscher- Ohlin Model 1. Suppose that Home ...
Economics Internation trade - Please help on the following question 2. (...
Economics - Consider the following two country-two goods world, with a single ...
Spanish - ? Select the number which best completes this sequence: 200, 400, 600 ...
Spanish-Please check - When I say four thousand houses in Spanish, is it gender...
Accounting - DATA: The 2011 employee performance bonus will be $10 mil. The ...
econ - In France each unit of labour can produce 3 bottles of wine or 2 shirts. ...
Spanish-Please check SraJMcGin - When I say four thousand houses in Spanish, is ...