This topic contains a solution. Click here to go to the answer

Author Question: Assume that the U.S. can produce either 10 million cell phones or 20 million picture frames and that ... (Read 94 times)

rosent76

  • Hero Member
  • *****
  • Posts: 516
Assume that the U.S. can produce either 10 million cell phones or 20 million picture frames and that Canada can produce either 2 million cell phones or 6 million picture frames. Based on this information, which of the following is true?
 a. Both countries could benefit if the U.S. traded cell phones to Canada for picture frames.
  b. Both countries could benefit if the U.S. traded picture frames to Canada for cell phones.
  c. Canada could gain from trade but the U.S. could not.
 d. The U.S. could gain from trade but Canada could not.

Question 2

According to the Ricardian model, the source of comparative advantage is:
 a. differences in labor productivity in the different countries.
  b. differences in foreign trade policies followed by the governments of the various countries.
  c. differences in resource endowments of the economies.
  d. differences in the fields of research and development in the countries.
  e. differences in the taste and preferences of the consumers in the different countries.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ebe

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

a

Answer to Question 2

a




rosent76

  • Member
  • Posts: 516
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


amandalm

  • Member
  • Posts: 306
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

For a complete list of videos, visit our video library