Question

In: Economics

3. The table below shows units of commodity X and Y that the U.S. and Mexico...

3. The table below shows units of commodity X and Y that the U.S. and Mexico can produce with one- hour of labor time. Output Per Hour of Labor Commodity U.S. Mexico X (in units) 5 20 Y (in units) 30 5

a. Identify the commodity in which the U.S. and Mexico have a comparative advantage.

Output Per Hour of Labor

Commodity

U.S.

Mexico

X (in units)

5

20

Y (in units)

30

5

b. Suppose that the U.S. exchanges 15Y for 45X with Mexico. What is the TOT for commodity Y? How much would the U.S. and Mexico gain?

Solutions

Expert Solution


Related Solutions

The table below shows the production possibilities of two countries, X and Y, of two goods,...
The table below shows the production possibilities of two countries, X and Y, of two goods, A and B, given a fixed amount of resources and particular technology. (For country X: a worker can produce per month 78A or 26B. For country Y a worker can produce per month Y: 96A or 48B). A B X 78 26 Y 96 48 1. Which country has the absolute advantage in A, and which country has the absolute advantage in B? (1...
The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic...
The table below shows annual returns for stocks of companies X and Y. Calculate the arithmetic average returns. In addition, calculate their variances, as well as their standard deviations.    Returns Year X Y 1 11 %     19 %     2 29         40         3 18         -9         4 -19         -23         5 20         48             Requirement 1: (a) The arithmetic average return of company X's stock is: (Click to select)  11.80%  9.56%  13.33%  14.75%  14.40%     (b) The...
The table below shows the distribution of income in the U.S. in the year 1978. Table...
The table below shows the distribution of income in the U.S. in the year 1978. Table 19.1 Percent Distribution of Aggregate Household Income in 1978, by Fifths of Households Households Percent of Income Lowest Fifth (under $6,391) 4.3 Second Fifth ($6,392 - $11,955) 10.3 Third Fifth ($11,956 - $18,122) 16.9 Fourth Fifth ($18,122 - $26,334) 24.7 Top Fifth ($26,335 and over) 43.9 Refer to Table 19.1. What percentage of income is received by the bottom 20% of the households? a....
The table below shows the number of deaths in the U.S. in a year due to...
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56 a) What is the probability that an American chosen at random died as a passenger car occupant...
The table below shows the number of deaths in the U.S. in a year due to...
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people. Cause Deaths Passenger car occupant (driver or rider) 13,100 Motorcycle (driver or rider) 4,500 Tornado 553 Skydiving 56 a) What is the probability that an American chosen at random died as a passenger car occupant...
The table below shows the number of deaths in the U.S. in a year due to...
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people. Cause Deaths Passenger car occupant 13,100 Motorcycle driver 4,500 Tornado 553 Skydiving 56 Make sure your answer is accurate to at least 2 significant figures (values after leading zeros) c) What is the probability that...
From the table below giving the quantity demanded of a commodity (Y), its price (X10, and...
From the table below giving the quantity demanded of a commodity (Y), its price (X10, and consumer income (X2) from 1996 to 2015, Find the least-squares regression equation of Y on X1 and X2 USING EXCEL’S DATA ANALYSIS TOOL. Test at the 5 percent for the statistical significance of the slope parameters, Find the adjusted and the adjusted coefficients of determination, and Test at 5 percent level for the overall statistical significance of the regression. Show all your results to...
The table below shows the bushels of corn and bottles of wine that China and U.S....
The table below shows the bushels of corn and bottles of wine that China and U.S. can produce from one day of labor under three different hypothetical situations. Product Case 1 Case 2 Case 3 China U.S. China U.S. China U.S. Corn(bushels) 4 2 4 1 4 1 Wine(bottles) 2 1 3 2 2 2 Use the table above to show for each case the commodity in which each country has a comparative advantage or disadvantage. Show your work. Answer...
The table below shows how many boogie boards and surfboards Mexico and Costa Rica can produce...
The table below shows how many boogie boards and surfboards Mexico and Costa Rica can produce each day: Mexico Costa Rica Boogie Board 250 210 Surfboards 50 30 Which country has the absolute advantage in producing boogie boards? Which country has the absolute advantage in producing surfboards? What are the opportunity costs of producing boogie boards and surfboards for both Mexico and Costa Rica? Which country has the comparative advantage in producing boogie boards? Which country has the comparative advantage...
The joint probability distribution of variables X and Y is shown in the table below. ...............................................................................X..........................................................................
The joint probability distribution of variables X and Y is shown in the table below. ...............................................................................X....................................................................... Y 1 2 3 1 0.30 0.18 0.12 2 0.15 0.09 0.06 3 0.05 0.03 0.02 Calculate E(XY) Determine the marginal probability distributions of X and Y.             Calculate E(X) and E(Y)             Calculate V(X) and V(Y)             Are X and Y independent? Explain.             Find P(Y = 2| X = 1) Calculate COV(X,Y). Did you expect this answer? Why? Find the probability distribution...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT