PS1 :Ten Principles of Economxy.. . MindTao-Cengage Learning G Sup pose That Fra
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PS1 :Ten Principles of Economxy.. . MindTao-Cengage Learning G Sup pose That France And D…| St Cloud Medical Secure ng.cengage.com/static/nb/uilindex.htmPmbld-7322398nbNodeld-2761967428deploymentid Re My Cann l TM. @ Apps Job Application Job opening-Centra Career Opportunitie- a Paperiess Pay-Pay Base Bbm MINDTAP PS3: Interdependence and the Gains from Trade Due Today at 11 PM CST S. Terms of trade Suppose that Greece and Austria both produce beer and wine. Greece's opportunity cost of producing a bottle of wine is 4 barrels of beer whilke Austria's opportunity cost of producing a bottle of wine is 10 barrels of beer By comparing the opportunity cost of producing wine in the two countries, you can tell thathas a comparative advantage in the production of wine and hasa comparative advantage in the production of beer. Suppose that Greece and Austria consider trading wine and beer with each other. Greece can gain from specialization and trade as long as it recelves more thatn ves more of beer for each bottle of wine it exports to Austria. Similarly, Austria can gain from trade as long as it Of wine for each barrel of beer it exports to Greece. answer to the last question, which of the following prices of trade (that is, price of wine in terms of beer) would allow both Austris and Greece to gain from trade? Check all that apply. 18barrels of beer per bottle of wine 1 barrel of beer per bottle of wine 6 barrels of beer per bottle of wine 2 barrels of beer per bottle of wine Grade it Now 883 6 2 3 4 Q.Explanation / Answer
1. Greece has comparative advantage in the production of wine as it can produce only 4 units of beer if it gives up wine.
2. Austria has comparative advantage in the production of beer since it can produce 10 bottles of beer for one unit of wine.
3. Greece can gain from specialization and trade if it recieves more than 4 units of beer for 1 unit of wine.
4. Austria will gain as long as it recieves more than 1/10 of wine for each unit of beer.
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