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Introduction to agricultural economics

John B. Penson, Jr&Oral Capps, Jr.&C. Parr Rosson III&Richard T. Woodward

Chapter 17

Why Nations Trade - all with Video Answers

Educators

Chapter Questions

01:36

Problem 1

The mercantilist philosophy argues that nations can become rich and powerful by exporting more than they import. T F

Tristan Wille
Tristan Wille
Numerade Educator
04:56

Problem 2

Comparative advantage states that a nation will export the foods that it can produce more cheaply than others and import the goods that other nations can produce more cheaply. T $F$

Jiapeng Guo
Jiapeng Guo
Numerade Educator
02:44

Problem 3

Opportunity costs reflect the cost of a good as measured by the amount of a second good that must be given up in order to produce one additional unit of the first good. T F

Pavitr Ahuja
Pavitr Ahuja
Numerade Educator
01:02

Problem 4

Comparative advantage is a monetary concept and is affected by changes in exchange rates or inflation. T $F$

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator
00:26

Problem 5

Competitive advantages based on nonmarket factors are dependent on politics rather than economics for sustained existence. $\quad T \quad F$

Jingchi Yan
Jingchi Yan
Numerade Educator
02:18

Problem 6

The basis for trade is differing _____ among nations.

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator
04:56

Problem 7

In order to achieve gains from trade, nations must specialize in the _____ of goods for which they are most efficient and _____ those goods with other nations.

Jiapeng Guo
Jiapeng Guo
Numerade Educator
00:36

Problem 8

The shows _____ all combinations of national output that can be produced by fully employing all available _____ and the most productive _____

Srikar Katta
Srikar Katta
Numerade Educator
00:48

Problem 9

The laissez-faire philosophy held that
a. strict government control of all economic activity was necessary.
b. little or no government control of the economy was needed.
c. nations need the government to establish export laws to stimulate the economy.
d. none of the above.

Liuxi Sun
Liuxi Sun
Numerade Educator
01:49

Problem 10

According to comparative advantage, a nation should
a. not import any goods if the nation does not have a relative disadvantage.
b. specialize in production of the good for which it has the least relative disadvantage.
c. import only the goods in which the nation has a disadvantage.
d. not produce any goods if the nation is at a relative disadvantage.

Megha Nayar
Megha Nayar
Numerade Educator

Problem 11

Opportunity cost theory states that a nation has
a. an absolute advantage in the production of the good with the lowest opportunity cost.
b. no advantage in the production of any good with an opportunity cost.
c. a comparative advantage in the production of the good with the lowest opportunity cost.
d. none of the above.

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00:22

Problem 12

Identify the factors affecting comparative advantage.

Daniel Cisneros
Daniel Cisneros
Numerade Educator
04:21

Problem 13

Discuss the difference between comparative advantage and competitive advantage.

Mihir Nayar
Mihir Nayar
Numerade Educator
03:13

Problem 14

If the United States produces 20 tons of grain and 10 tons of coffee per man-hour and Mexico produces 15 tons of grain and 3 tons of coffee per man-hour, what commodity should each country produce according to the law of competitive advantage?

Oluwadamilola Ameobi
Oluwadamilola Ameobi
Numerade Educator