1st blank (Portugal or Switzerland?) 2nd blank(Portugal or Switzerland?) 3rd bla

Question

1st blank (Portugal or Switzerland?)

2nd blank(Portugal or Switzerland?)

3rd blank( 1, 1/10, 1/4, 4, or 10 pounds ?)

4th blank (1, 1/10, 1/4, 4 or 10 crates ?)

lastly. Based on your answer.......and Portugal to gain from trade? check all that apply

ack to Asmet Attempts 5. The price of trade Average: 3 Suppose that Portugel and Swtzerland both produce f sh and alives. Portugar's opportunity cost of producing a crate of clives is 4 pounds of fiah wmhde Switzerland's opportunity cost of producing a crate of ollves is 10 pounds of fish By comparing the opportunity cost of producing olives in the two countries, you can tell that Portugal hes a com peratve advantage in e production of olilves and Suppose that Portugal and Switzerland consider trading olves and fish with each other. Portugali can gain from specislization and trade es long as it receves more thanof Based on your answer to the last question, which of the folloming prices of trade (that is, price of olives in terms of fnsh) would allow both Switzerter has a comparative edvantage in the production of fish. receives more than of fish for each crate of oives it exports to Switzeriand. Similarty, Switzerland can gain from trade as long as t of olives for each pound of fhish it exports to Partugal. and Portugal to gain from trade? Check al that apply 6 pounds of fish per crate of clives D 1 pounc of fish per crate of olives E 2 pounds of frish per crate of clives 8 pounds of fish per crate of olves

Explanation / Answer

Ans

1 Portugal since its OPPUTUNITY cost of olive is less

2 swizerland

3 more than 4 I. E greater than domestic relative price

4 1/10

5 first and last apply. Anything between domestic price ratios

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