beef production

34.Amount of Beef or Computers Produced by
One Worker in a Day
Canada Japan
Beef 8 5
Computers 3 4
2. Which country has the absolute advantage in beef
production?
3. Which country has the absolute advantage in computer
production?
4. Which country has the comparative advantage in
beef production?
5. Which country has the comparative advantage in
computer production?
6. What are the limits of the terms of trade? Specifically,
when is Canada willing to trade with Japan,
and when is Japan willing to trade with Canada?

35. 

3. Tariffs and quotas both raise the price of foreign
goods to domestic consumers. What is the difference
between the effects of a tariff and the effects of
a quota on the following?
a. The domestic government
b. Foreign producers
c. Domestic producers

9. How would the effects of international trade on the
domestic orange market change if the world price
of oranges were above the domestic equilibrium
price? Draw a graph to help explain your answer.

36.

13. You are a U.S. importer who buys goods from
many different countries. How many U.S. dollars
do you need to settle each of the following
invoices?

a. 1,000,000 Australian dollars for wool blankets
(exchange rate: A$1 . $.769)
b. 500,000 British pounds for dishes (exchange
rate: £1 . $1.5855)
c. 100,000 Indian rupees for baskets (exchange
rate: Rs1 . $.0602)
d. 350 million Japanese yen for stereo components
(exchange rate: ¥1 . $.0069)
e. 825,000 euros for German wine (exchange rate:
E 1 . $1.05)
14. What is the dollar value of the invoices in exercise
13 if the dollar:
a. depreciates 10 percent against the Australian
dollar
b. appreciates 10 percent against the British pound
c. depreciates 10 percent against the Indian rupee
d. appreciates 20 percent against the Japanese yen
e. depreciates 100 percent against the euro
15. Explain purchasing power parity and why it does
not hold perfectly in the real world