(SOLVED) Problem Set 7 International Trade (if you have difficulty be sure


Question Description:

$20
Question

I need the following questions 1-17 answered using the attached document:

QUESTION 1

  1. Which country has the absolute advantage in beer production?
    Mexico
    United States

1 points

QUESTION 2

  1. Which country has the absolute advantage in tomato production?
    Mexico
    United States

1 points

QUESTION 3

  1. Now you need find the relative prices.Let B = beer and T represent tomatos.Let’s start with the relative price of beer in Mexico. If Mexico produces 1B (1 beer) it will sacrifice production of _______ T, tomatos. (numeric)

1 points

QUESTION 4

  1. Now you need find the relative prices.Let B = beer and T represent tomatos.Let’s stay with Mexico’s relative prices. If Mexico produces 1T (1 tomato) it will sacrifice production of _______ B, beer. (numeric)

1 points

QUESTION 5

  1. Now you need find the relative prices in the United States.Let B = beer and T represent tomatos.If the United States produces 1B (1 beer) it will sacrifice production of _______ T, tomatos. (numeric)

1 points

QUESTION 6

  1. Now you need find the relative prices in the United States.Let B = beer and T represent tomatos.If the United States produces 1T (1 tomato) it will sacrifice production of _______ B, beer. (numeric)

1 points

QUESTION 7

  1. Which country has the comparative advanatge in the production of beer?
    Mexico
    United States

1 points

QUESTION 8

  1.  Which country has the comparative advanatge in the production of tomatoes?
    Mexico
    United States

1 points

QUESTION 9

  1. What product(s) does Mexico specialize in and export to the US?
    beer
    tomatoes
    beer and tomatoes
    neither beer nor tomatoes

1 points

QUESTION 10

  1. What product(s) does Mexico import from the United States?
    beer
    tomatoes
    beer and tomatoes
    neither beer and tomatoes

1 points

QUESTION 11

  1. What product(s) does the Uniteds States specialize in and export to Mexico?
    beer
    tomatoes
    beer and tomatoes
    neither beer nor tomatoes

1 points

QUESTION 12

  1. What product(s) does the United States import from Mexico?
    beer
    tomoatoes
    beer and tomatoes
    neither beer and tomatoes

1 points

QUESTION 13

  1. Which of the following offer prices is acceptable to BOTH the United States and Mexico?
    1B = 4T (1 beer trades for 4 tomatoes)
    1T = 0.167 B (1 tomato trades for 1/6th of a beer)
    1B = 0.25T (1 beer trades for 1/4 a tomato)

2 points

QUESTION 14

  1. For next series of questions you need to look at your Graph of MEXICO’s PPC.PLACE Tomatoes on the Y vertical axis.Which of the following sets of coordinates (endpoints) describes your graph of Mexico’s PPC?
    (8750T,0B) and (0T,1250B)
    (0B, 8750T) and (1250B, 0T)
    (8750T,0B) and (1250B, 0T)
    (0B, 8750T) and (0T,1250B)

2 points

QUESTION 15

  1. Look at Mexico’s PPC you drew with T on the vertical axis.The slope of Mexico’s PPC is equal to ________(numeric and sign)

2 points

QUESTION 16

  1. Look at Mexico’s PPC that you drew with tomatoes on the vertical axis.Which of the following statements best describes the interpretation of the slope you found?
    For every beer produced Mexico sacrifices 1/7 of a tomato.
    For every beer produced Mexico sacrifices 7 of a tomato.
    For every 7 beers produced Mexico sacrifices 1 tomato.
    Mexico can produce 7 toamtoes and 1 beer for each unit of resources it has employed.

2 points

QUESTION 17

  1. Now look at the graph you drew showing how Mexico could benefit with trade with the United States.Remember to use the product Mexico specializes in. If Mexico trades ALL of the product it specializes in to the United using the acceptable offer price it will receive ___________ in return.
    1250 beers
    1458 beers
    2000 beers
    7500 tomatoes

Answer

$20