Suppose that the average worker in Umbria can produce 5 kilos of beans or 3 bottles of wine. In Lazio, the average worker can produce 4 kilos of beans or 2 bottles of wine. Which country has a comparative advantage in the two products?Multiple choice question.Lazio in both productsUmbria in wine and Lazio in beansUmbria in beans and Lazio in wineUmbria in both products

Suppose that the average worker in Umbria can produce 5 kilos of beans or 3 bottles of wine. In Lazio, the average worker can produce 4 kilos of beans or 2 bottles of wine, What is the cost of a bottle of wine in Umbria and in Lazio?Multiple choice question.0.6 beans; 0.5 beans5 beans; 4 beans1.67 beans; 2 beans1.25 beans; 1.5 beans

Two countries produce coal and iron. Country A can produce a maximum of 500 tons of coal per day or 250 tons of iron. Country B can produce a maximum of 900 tons of coal per day or 300 tons of iron. Which statement best describes this situation?A.Country B has a comparative advantage producing coal.B.Country B has a comparative advantage producing iron.C.Country A has an absolute advantage producing coal.D.Country A has an absolute advantage producing iron.

A country has an absolute advantage in the production of a product when it:Select one:a.Has access to the raw materials needed to produce the product.b.Has the capability to produce the product within its boundaries.c.Has the largest domestic demand for the product.d.Is more efficient than any other country in producing it.Clear my choice

Consider two countries, Germany and France, and two goods, cars and wine. Labour is the only input factor used. The table below presents the marginal products of labour in both countries and industries. Cars Wine Germany 60 80 Italv 60 50 There are 120 units of labour available in Germany and 95 units in Italy. 1) Determine and explain which country has the absolute advantage in wine production. Calculate the autarky relative prices of wine in these two countries. (2 points) Suppose at the trade equilibrium, the relative price of wine is 0.75. 2) Determine the type of goods produced in each country. Explain with reference to opportunity cost and the comparative advantage. (5 points) 3) Draw the export supply and import demand diagram of wine. Carefully label everything on your diagram. (3 points) 4) Quantify the gains from trade for Italy. [Hint: calculate and compare the real wage in terms of the imported good before and after opening to trade.] (4 points) Saved at 16:02

If a country differs from the rest of the world in taste patterns but not in production capabilities, the trade will lead to some international specialization in ___________.Select one:a.Productionb.Consumptionc.Productivityd.Techniques of production