3.75 60 26.67 180 1 points Question 12 3 0.33 5 1.25 1 points Question 13 It tak

Question

3.75

60

26.67

180

1 points   

Question 12

3

0.33

5

1.25

1 points   

Question 13

It takes fewer units of labor to make a shirt in the United States than it does in Mexico.

It takes fewer units of labor to make a computer in the United States than it does in Mexico.

It takes more units of labor to make a shirt in the United States than it does in Mexico.

It takes the same number of units of labor to make a computer in the United States as it does in Mexico.

1 points   

Question 14

they are trading partners.

of the law of demand.

increasing efficiency can lead to additional shirts and computers in both countries.

with fixed resources, both countries face a trade-off between shirts and computers.

1 points   

Question 15

3 shirts

1/3 of a shirt

12 shirts

8 shirts

1 points   

Question 16

1 computer

4 computers

8 computers

0.25 computers

1 points   

Question 17

The United States

Mexico

Both countries have a comparative advantage in the production of computers.

Neither country has a comparative advantage in the production of computers.

1 points   

Question 18

The United States, because it can produce more shirts than computers.

The United States, because the opportunity cost of a shirt is lower in Mexico.

Mexico, because the opportunity cost of a shirt is lower in Mexico.

Mexico, because the United States has the absolute advantage in the production of computers.

1 points   

Question 19

3.5 computers and 12 shirts; 4 computers and 12 shirts

3.5 computers and 12 shirts; 7 computers and 24 shirts

7 computers and 24 shirts; 4 computers and 12 shirts

4 computers and 12 shirts; 7 computers and 24 shirts

3.75

60

26.67

180

Explanation / Answer

Q1) 15*4 = 60 : 4 computers is the capacity of production of U.S. producing maximum computers)

12.) 15*4/12 = 5 : Maximum number of labour devided by maximum producable shirts, labour per shirt

13) "It takes fewer units of labor to make a computer in the United States than it does in Mexico." because with the same number of labour as in U.S. there are fewer computers in Mexico or more labour is required to produce computers in mexico

14) d.with fixed resources, both countries face a trade-off between shirts and computers.

because in both the cases the limitation is the labour labour could produce one thing or the other not the both at the same time.

15) 12/4 = 3 shirts (a)

16) 3/12 = 0.25 computers (d)

17) The United States (a) because wen buy a computer for fewere shirts in U.S.

18) Mexico, because the opportunity cost of a shirt is lower in Mexico. (c) More shirts for lesser computers

19) 3.5 computers and 12 shirts; 4 computers and 12 shirts (a)

half the labour produces in

U.s. : 2 Comps and 6Shirts

Mexico : 1.5 comps and 6shirts

Thus Total = 3.5 comps and 12 Shirts

Now, U.S. Completely specialises in production of computers Then it produces = 4 Computers

and Mexico = 12 Shirts

Thus option (a) is the answer

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