1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
trapecia [35]
3 years ago
9

Suppose that without specialization, Iran produces 4 barrels of oil and 6 bottles of olive oil, and Iraq produces 4 barrels of o

il and 4 bottles of olive oil (in millions per day). Are the countries better off or worse off with specialization and trade? Suppose that the terms of trade with specialization are 4 barrels of oil for 4.3 bottles of olive oil, and that 4 barrels of oil are indeed traded for 4.3 bottles of olive oil. With specialization and trade, how many additional barrels of olive oil can Iran consume?
Business
1 answer:
Elza [17]3 years ago
6 0

Answer:

With specialization Iran will be able to consume 1.7 bottles of olive oil.

Explanation:

Iran produces 4 barrels of oil and 6 bottles of olive oil.

Iraq produces 4 barrels of oil and 4 bottles of olive oil.

The opportunity cost of producing a barrel of oil for Iran

= \frac{6}{4}

= 1.5

The opportunity cost of producing a barrel of oil for Iraq

= \frac{4}{4}

= 1

Iraq has a lower opportunity cost for producing oil so we can say it has a comparative advantage in producing oil.

The opportunity cost of producing a barrel of olive oil for Iran

= \frac{4}{6}

= 0.66

The opportunity cost of producing a barrel of olive oil for Iraq

= \frac{4}{4}

= 1

Iran has a lower opportunity cost for producing olive oil so we can say it has a comparative advantage in producing it.

The terms of trade with specialization are 4 barrels of oil for 4.3 bottles of olive oil, and that 4 barrels of oil are indeed traded for 4.3 bottles of olive oil.

Without trade, Iran is consuming 4 barrels of oil and 6 bottles of olive oil.

With specialization, Iran will be able to consume

= 6 - 4.3

= 1.7 bottles of olive oil

You might be interested in
A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who ha
weqwewe [10]

Answer:

1. A basic finding of labor economics is that workers who have more experience in the labor force are paid more than workers who have less experience (holding constant the amount of formal education). True

2. This might be the case because people with more experience have usually had more on-the-job training. True

3. Some studies have also found that experience at the same job (called job tenure) has an extra positive influence on wages. Job tenure is valuable because people gain <u>job-specific knowledge</u> that is useful to the firm.

Explanation:

A worker with more experience means more on-the-job training, this drastically increases the worker's value of the marginal product of labor.

5 0
3 years ago
What are objectives of human resource department​
Fantom [35]

Answer:

Objectives of HRM include ensuring availability of resources, easy access to data, on-time payroll, ensuring compliances, etc. HRM objectives are basically influenced by organisational goals and vertical. Objective of HRM is to ensure a stable work environment with data at one place and efficient operations.

4 0
3 years ago
Marco is a Latino who lives in Boston, Massachusetts. Over the years, he has noticed that more stores in his community specializ
boyakko [2]

Answer:

<u>the trend of more Latino immigration </u>

Explanation:

The stores have identified a market opportunity because of the increase in Latino immigrants in Boston, Massachusetts.

Note that when a significant amount of a population come from a certain ethnic group, demand for ethnic products is more likely to increase. Thus, this has made Marco feel very much at home.

3 0
3 years ago
Where do you find the 800 number for Amazon.com?
Bezzdna [24]
At www.800numbers.com
4 0
4 years ago
You can avoid storage and assaying problems by investing in:
Aleksandr [31]
The answer that best fits the blank is GOLD BULLION COINS. In order for you to avoid problems regarding storage, it would be best to invest in this kind of kinds. Typically, brokers would require at least 10 coins plus a 2% commission fee. Since it is gold and gold is considered to be one of the metals with a very high value, this would also mean that these coins also take the value of gold in the market.
7 0
3 years ago
Other questions:
  • During the ________ stage of group development, work behaviors evolve into a sharing of information, acceptance of different opi
    11·2 answers
  • Semiotics refers to a field of study in marketing linguistics that identifies the connotative meanings behind words in order to
    5·1 answer
  • In the Plus-Delta method of evaluating project meetings, the "delta" column is used for team members to offer their opinion abou
    13·1 answer
  • How are volatility and risk related in an investment?
    15·2 answers
  • The following events occurred for Favata Company: Received $12,000 cash from owners and issued stock to them. Borrowed $9,000 ca
    5·1 answer
  • Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound opti
    5·1 answer
  • Which of the following statements characterizes the growth stage of the product life cycle?
    10·1 answer
  • Prepare a marketing plan to market yourself. Visit a career website and locate three careers listed on the website and determine
    7·1 answer
  • The assets and liabilities of a company are $86,600 and $44,499, respectively. Stockholders' equity should equal a.$44,499 b.$13
    13·1 answer
  • What is collateral?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!