Question
In: Economics
Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of...
Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day.
|
France |
Germany |
|
Wine (Bottles) |
Schnitzel (Pounds) |
Wine (Bottles) |
Schnitzel (Pounds) |
|
0 |
12 |
0 |
25 |
|
1 |
9 |
1 |
20 |
|
2 |
6 |
2 |
15 |
|
3 |
3 |
3 |
10 |
|
4 |
0 |
4 |
5 |
|
5 |
0 |
1. Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel?
A. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine.
B. France has a comparative advantage producing wine and schnitzel.
C. Neither has a comparative advantage producing wine or schnitzel.
D. Germany has a comparative advantage producing wine and schnitzel.
E. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel.
2. Suppose that France is currently producing 1 bottle of wine and 9 pounds of schnitzel and Germany is currently producing 3 bottles of wine and 10 pounds of schnitzel. Then, assume instead that France and Germany specialize by producing only the good for which they have a comparative advantage and then trade 3 bottles of wine for 12 pounds of schnitzel. After specialization and trade, France gains by consuming the same amount of wine and [ answer ] additional pound(s) of schnitzel (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and [ answer ] additional pound(s) of schnitzel.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
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Product
Case 1
Case 2
Case 3
China
U.S.
China
U.S.
China
U.S.
Corn(bushels)
4
2
4
1
4
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Wine(bottles)
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the information in the table
Joe
Serena
Baseballs
Footballs
Baseballs
Footballs
Devote all time to producing baseballs
10
0
4
0
Devote all time to producing footballs
0
10
0
8
Group of answer choices
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United States
Mexico
Hamburgers (in tons)
Tacos (in tons)
Hamburgers (in tons)
Tacos (in tons)
0
144
0
120
80
96
8
80
160
48
16
40
240
0
24
0
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Wine
Market
Price (P )
Quantity
Demanded (Qd )
Quantity Supplied (Qs )
$0
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0
$10
125
50
$20
100
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75
150
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50
200
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0
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(barrels)
Computers
A
70
0
B
60
20
C
50
36
D
40
48
E
30
56
F
20
60
G
10
63
H
0
65
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Output per Hour Worked
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Germany
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2 kilograms
1
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