Exam 9: Comparative Advantage and the Gains From International Trade

Denmark and Belize can produce both clocks and hats. Each country has a total of 200 available labor hours for the production of clocks and hats. Table 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-6. Which country has a comparative advantage in producing hats?

Denmark and Belize can produce both clocks and hats. Each country has a total of 200 available labor hours for the production of clocks and hats. Table 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-6. What is the opportunity cost to produce 1 clock in Belize?

Denmark and Belize can produce both clocks and hats. Each country has a total of 200 available labor hours for the production of clocks and hats. Table 9-6 shows the output per hour of work, the production and consumption quantities without trade, and the production numbers with trade. -Refer to Table 9-6. Which country has an absolute advantage in producing hats?

Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision, in which all government contracts require the use of Canadian-made products. This policy is likely to cause

Table 9-5 shows the output per week for bows and arrows by Ahmet and MyLinh. -Refer to Table 9-5. Fill in the following table with the opportunity costs of producing bows and arrows for Ahmet and MyLinh.

Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 9-1. Select the statement that accurately interprets the data in the table.