MndTap . Cengage Learning (-CON t Secure ng.cengage.constatierbuuinder.htmimbld-

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MndTap . Cengage Learning (-CON t Secure ng.cengage.constatierbuuinder.htmimbld-732239&nbN0deida270196742;&deployment;!d-94043337519 m AppsJob Application * Job Opening. Centra- Career Opporturie- Paperless Pay-Pay File My Claim T-Mo a Basic Egblity· MINDTAP EC3: Interdependence and the Gains from Trade Due Today at 11 PM CST Back to Assignment Score: 8. Problems and Applications Q7 cir and AGerman worker takesA00 hours to produce a car and 2 hours to produce a case of wne, A French worker takes 600 hours to produce X hours to produce a case of wine. For what values of X will gains from trade be possible? Check al chat apply 300 For what values of X will Germany export cars and import wine? Check all th 3 4 5 6 2

Explanation / Answer

ANSWer B

1. When X= 2 or When X= 300, then only will the gains of trade be possible between the two countries.

(As when X= 2 , France will have a comparitive advantage in producing a case of vine, while Germany will be better off when producing cars. While when X= 300 , Germany can invest the whole time in production of case of wine , while letting France producer the cars)

2. X= 1 and X=2

(Only when X= 1 orX= 2 hours, then only will Germany export cars , while import wine, as when X=1, France will have an absolute advantage in production of Wines , while when X= 2 , France will have a comparative advantage in the production of Wines, so trade will be possible and the world economy will grow).

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