Question
In: Economics
The following table represents the production quantities of shoes and clothes in each country in a...
The following table represents the production quantities of shoes and clothes in each country in a Ricardian world. Answer the questions in this set according the table.
|
Quantity |
Home |
RoW |
|
Shoe (pairs/hr) |
18 |
6 |
|
Cloth (racks/hr) |
10 |
8 |
- If Home trades 18 pairs of shoes to the RoW for 15 racks of cloth, what will be the gain of Home in terms of cloth?
- If Home trades 18 pairs of shoes to the RoW for 15 racks of cloth, what will be the gain of Home in terms of shoes?
- If RoW trades 40 racks of cloth to Home for 36 pairs of shoes, what will be the gain of RoW in terms of shoes?
- If RoW trades 40 racks of cloth to Home for 36 pairs of shoes, what will be the gain of RoW in terms of cloth?
- RoW wants to offer 16 racks of cloth to Home. What is the amount of shoes RoW will demand in order to gain from this trade?
- Home wants to offer 54 pairs of shoes to RoW. What is the amount of cloth Home will demand in order to gain from this trade?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
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Suppose Nike opened a new production plant in China to produce sports clothes and shoes. After...
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Shoes (million pairs per year)
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0
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1
32
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sports clothes and shoes. After operating for several years, the
company collected the following data about production possibilities
(left table) and marginal benefit (middle table).
PPF
MB
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0
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1
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