【正文】 Units Produced by One Worker/Hour Cloth Widgets Home 100 200 Foreign 60 30 What is the opportunity cost of cloth in terms of Wwdgets in Foreign? 5. Given the following information: Units Produced by One Worker/Hour 12 Cloth Widgets Home 100 200 Foreign 60 30 If these two countries trade these two goods with each other in the following the Ricardian model of parative advantage, then what is the lower limit for the world equilibrium price of cloth? 13 1. Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. a. Graph Home39。s was flatter to the butter axis. We now learn that the German mark is sharply depreciated against the . dollar. We now know that A. the United States has no parative advantage B. Germany has a parative advantage in butter. C. the United States has a parative advantage in butter. D. Not enough information is given. E. None of the above. 9 37. Suppose the United States39。s was flatter to the butter axis, we know that A. the United States has no parative advantage B. Germany has a parative advantage in butter. C. the . has a parative advantage in butter. D. Not enough information is given. E. None of the above. 36. Suppose the United States39。s 30. D. . labor productivity equaled 15 and Japan39。s 15 units per hour. B. . productivity equaled 30 units per hour whereas Japan39。s (the relative wage exceeding the relative productivity ratios), then A. it is not possible that producers in each will find export markets profitable. B. it is not possible that consumers in both countries will enhance their respective welfares through imports. C. it is not possible that both countries will find gains from trade. D. it is possible that both will enjoy the conventional gains from trade. E. None of the above. 30. The Ricardian model is based on all of the following except A. only two nations and two products. B. no diminishing returns. C. labor is the only factor of production. D. product quality varies among nations. E. None of the above. 31. Ricardo39。s (the relative wage exceeding the relative productivity ratios), then if they both use the same currency A. neither country has a parative advantage. B. only the low wage country has a parative advantage. C. only the high wage country has a parative advantage. D. consumers will still find trade worth while from their perspective. E. None of the above. 29. If one country39。s trade is restricted, this will cause all except which? A. Limit specialization and the division of labor. B. Reduce the volume of trade and the gains from trade C. Cause nations to produce inside their production possibilities curves D. May result in a country producing some of the product of its parative disadvantage E. None of the above. 20. If a very small country trades with a very large country according to the Ricardian model, then A. the small country will suffer a decrease in economic welfare. B. the large country will suffer a decrease in economic welfare. C. the small country will enjoy gains from trade. D. the large country will enjoy gains from trade. 6 E. None of the above. 21. If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then A. country H but not country F will gain from trade. B. country H and country F will both gain from trade. C. neither country H nor F will gain from trade. D. only the country whose government subsidizes its exports will gain. E. None of the above. 22. If the world terms of trade equal those of country F, then A. country H but not country F will gain from trade. B. country H and country F will both gain from trade. C. neither country H nor F will gain from trade. D. only the country whose government subsidizes its exports will gain. E. None of the above. 23. If the world terms of trade equal those of country ,F then A. country H but not country F will gain from trade. B. country H and country F will both gain from trade. C. neither country H nor F will gain from trade. D. only the country whose government subsidizes its exports will gain. E. None of the above. 24. If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of A. constant opportunity costs. B. increasing opportunity costs. C. decreasing opportunity costs. D. infinite opportunity costs. E. None of the above. 25. If two countries have identical production possibility frontiers, then trade between them is not likely if A. their supply curves are identical. B. their cost functions are identical. C. their demand conditions identical. D. their ines are identical. E. None of the above. 26. If two countries have identical production possibility frontiers, then trade between them is not likely if A. their supply curves are identical. B. their cost functions are identical. C. their demand functions differ. 7 D. their ines are identical. E. None of the above. 27. The earliest statement of the principle of parative advantage is associated with A. David Hume. B. David Ricardo. C. Adam Smith. D. Eli Heckscher. E. Bertil Ohlin. 28. If one country39。s production possibilities frontier. E. on its trad