Please explain WHY that’s the point of question here . Explain and give more det
ID: 1142785 • Letter: P
Question
Please explain WHY that’s the point of question here . Explain and give more details when you choiceKindly only answer if you are a real economist, and sure about your answers . Because I’m sick of people posting random and waste my questions credit !
Thank you !
The graphs below show the production possibilities curves for the U.S. and Canada, which both produce cars and wheat 10) Based on the graphs above, which of the following is true? A) The U.S. has an absolute advantage in both goods. B) Canada has an absolute advantage in cars. C) The U.S. has a comparative advantage in cars. D) The U.S. has a comparative advantage in wheat. 11) Based on the graphs above, which of the following is true? A) The opportunity cost of a car in the U.S. is1 unit of wheat B) The opportunity cost of a car in the U.S. is 5 units of wheat. C) The opportunity cost of a car in Canada is 1/2 unit of wheat. D) The opportunity cost of a car in Canada is 2 units of wheat. 12) If a nation has no absolute advantage, then it A) cannot gain from trade. B) still gains from trade. C) can only gain from trade if it raises its productivity levels. D) can only gain from trade if it produces outside its production possibilities curve. 13) If two countries agree to specialize and trade based orn comparative advantage, which of the following is most likely to be true? A) Both of the countries will consume outside their respective production possibilities curves. B) One of the countries will end up receiving all of the gains from trade C) One of the countries will both consume and produce on its production possibilities curve. D) Only one of the countries will produce on and consume outside its production possibilities curve. 14) If the world price for a good is above a nation's equilibrium price, then the nation A) will export the good. B) will import the good. C) will neither export nor import the good. D) cannot gain from trade. E) Both C and D pre-trade
Explanation / Answer
10) THe asnwer is A -) The U.S has an absolute advantage in both goods.
because, U.S can produces 6 cars and 6 bushels of wheat . so he has absolute advantage in both goods on the other hand, Canada has a absolute advantage in production of wheat.
11) The asnwer is C -) the opportunity cost of car is Canada is 1/2 unit of wheat.
because opporuntity cost = what we forget / what we get.
OC of car = 5/10 = 1/2 unit of wheat.
12) The answer is B -) Still gains from trade.
13) The asnwer is A -) both of the countries will consume outside thier representative production possibility frontier.
14) The asnwer is A -) Will export the good.