The table below shows the hourly output per worker in two industries in Chile and Argentina. Use this table to answer the following questions.
a. ___________has an absolute advantage in the production of?hats, and _______________has an absolute advantage in the production of beer.
b. ____________ has a comparative advantage in the production of? hats, and____________ has a comparative advantage in the production of beer.
c. Suppose that Chile and Argentina currently do not trade with each other. Each has? 1,000 hours of labor to use for producing hats and? beer, and the countries are currently producing the amounts of each good shown in the table below. Using this? information, give a numerical example of how Chile and Argentina can both gain from complete specialization and trade. Assume that after trading? begins, one hat can be exchanged for one barrel of beer. Hats beer chile 9000 600 Argentina 600 800
Complete the table below. The table represents the amount of hats and beer after trading for each country hats beer chile ________ 600 Argentina 600 _______
Ans:
a. Chile; chile
b. Chile; argentina
c. 9400; 1400
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_____________ Capital Markets Small homogeneous units (shares) of ownership in assets trade in public exchanges Many buyers and sellers Price quotes available for all to see Characterized by a high degree of liquidity Informationally efficient
Fill in the blank(s) with the appropriate word(s).
Income mobility tells us:
A. how likely people are to seek out opportunities to better themselves. B. the inflation rate associated with wages across all jobs in a country. C. how available the opportunity to better oneself is in the economy. D. the inflation rate relative to the cost of living in a country.