Assume the following productivity data for the US, Brazil and Mexico with regard to pineapple and...

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Economics

Assume the following productivity data for the US, Brazil andMexico with regard to pineapple and coffee production:
Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â PineapplesÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Coffee
US (daily output perworker)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 30lbÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 15 lb
Brazil (daily output perworker)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 40lbÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 75 lb
Mexico (daily output perworker)Â Â Â Â Â Â Â Â Â Â Â Â 16lbÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 25 lb
QUESTION 1
Apply only the theory of absoluteadvantage.
What trade, if any, would we see between the US and Brazil?
a. No trade because Brazil has the absolute advantage in bothproducts
b. Brazil will specialize in coffee and trade coffee for USpineapples
c. Brazil will specialize in pineapples and trade pineapples forUS coffee
d. Brazil will buy both coffee and pineapples from US
QUESTION 2
Apply only the theory of absoluteadvantage.
What trade, if any, would we see between Mexico and Brazil?
a. No trade because Brazil has the absolute advantage in bothproducts
b. Brazil will specialize in coffee and trade coffee for Mexicanpineapples
c. Brazil will specialize in pineapples and trade pineapples forMexican coffee
d. Brazil will buy both coffee and pineapples from Mexico
QUESTION 3
Apply only the theory of absoluteadvantage.
What trade, if any, would we see between Mexico and the US?
a. No trade because Mexico has the absolute advantage in bothproducts
b. US will specialize in coffee and trade coffee for Mexicanpineapples
c. US will specialize in pineapples and trade pineapples forMexican coffee
d. No trade because US has absolute advantage in bothproducts
QUESTION 4
Now apply the theory of comparativeadvantage.
What trade, if any, would we see between the US and Brazil?
a. No trade because Brazil has the absolute advantage in bothproducts
b. Brazil will specialize in coffee and trade coffee for USpineapples
c. Brazil will specialize in pineapples and trade pineapples forUS coffee
d. Brazil will buy both coffee and pineapples from US
The U.S. Congress proposes a law imposing tariffs and quotas toblock most Brazilian coffee from entering the US market.
For each of the following groups, answer AGREE if you believethey would support, and be helped by, such a law. Answer DISAGREEif you believe they would oppose, and be hurt by, such a law.
QUESTION 5: US coffee consumers
Agree
Disagree
QUESTION 6: US coffee farmers
Agree
Disagree
QUESTION 7: US pineapple farmers
Agree
Disagree
QUESTION 8: Brazilian coffee farmers
Agree
Disagree
QUESTION 9: Mexican coffee farmers
Agree
Disagree

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QUESTION 1 On the basis of absolute advantage there would be no trade because Brazil has the absolute advantage in the production of both products So option a is the correct answer Question 2 On the basis of absolute advantage there See Answer

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