Information for questions 21-25 The graphs below show the p…

Information for questions 21-25 The graphs below show the production possibilities curves (PPC) for the U.S. and Canada, which both produce cars and wheat. Initially suppose that the two countries trade only with each other. Careful: the figures are not on the same scale, don’t use the scale for any answers. Instead use your reasoning and calculations.     Finally, consider the more realistic situation in which the U.S. and Canada are immersed in a world with many more countries. Suppose that in the world the prevalent trade price is 3 units of wheat per car. Further assume that the U.S. and Canada trade neither wheat nor cars with each other, but rather trade with the rest of the world. Complete the sentence, under these circumstances: When the U.S. and Canada do not trade with each other, but rather trade with the rest of the world, at the price of 3 units of wheat per car, the U.S. specializes in __________ and Canada specializes in ________ . A country specializes in a good when it only produces that good, and produces 0 units of the other good.  

Information for questions 14-20 There are two countries, Hom…

Information for questions 14-20 There are two countries, Home and Foreign. Labor is the only factor of production. There are two goods, X and Y. The following table shows the output of each good per hour of labor, in the two countries. Home has 100 units of labor, Foreign has 500 units of labor.   Home Foreign Good X 1 4 Good Y 3 24 Home has Comparative Advantage in:

Variable Value (millions of dollars) Trade-to-GDP ratio  0…

Variable Value (millions of dollars) Trade-to-GDP ratio  0.15 GDP  456.2 Exports 61.64 Imports ??? The table above shows some statistics for a nation. Calculate this nation’s imports. Enter a whole or decimal number, round it to the second decimal digit.