Use the following information for the next seventeen questions:
Assume that it takes the US 150 units of labor to produce a table and 30 units of labor to produce a chair.
Assume it takes the Netherlands 100 units of labor to produce a table and 10 units of labor to produce a chair.
Assume that each country has 4800 units of labor and before the trade, each country splits its labor evenly between chair and table production.
Assume that when the countries decide to trade, the country specializing in table production specializes in table production only.
Assume that when the countries decide to trade, the country that specializes in chair production uses 1000 units of labor for table production and the rest (3800 units for chair production).
Assume that when the countries trade, there are a total of 15 tables traded at a rate of 7 chairs per table.
1)
When there is no trade, how many tables does the US consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
2)
When there is no trade, how many chairs does the US consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
3)
When there is no trade, how many chairs does the Netherlands consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
4)
When there is no trade, how many tables does the Netherlands consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
5)
What is the opportunity cost for the Netherlands for the production of one chair in terms of the number of tables?
Hint: enter a number only, do not write chairs after the number and if the number is a fraction, enter it as a decimal
For example: if the answer is 8 chairs, enter 8 or if the answer is 1/4 chairs, enter 0.25.
6)
After the trade, how many tables does the US consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
7)
After the trade, how many chairs does the US consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
8)
After the trade, how many tables does the Netherlands consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
9)
After the trade, how many chairs does the Netherlands consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
Use the following information for the next seventeen questions:
Assume that it takes the US 150 units of labor to produce a table and 30 units of labor to produce a chair.
Assume it takes the Netherlands 100 units of labor to produce a table and 10 units of labor to produce a chair.
Assume that each country has 4800 units of labor and before the trade, each country splits its labor evenly between chair and table production.
Assume that when the countries decide to trade, the country specializing in table production specializes in table production only.
Assume that when the countries decide to trade, the country that specializes in chair production uses 1000 units of labor for table production and the rest (3800 units for chair production).
Assume that when the countries trade, there are a total of 15 tables traded at a rate of 7 chairs per table.
1)
When there is no trade, how many tables does the US consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
2)
When there is no trade, how many chairs does the US consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
3)
When there is no trade, how many chairs does the Netherlands consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
4)
When there is no trade, how many tables does the Netherlands consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
5)
What is the opportunity cost for the Netherlands for the production of one chair in terms of the number of tables?
Hint: enter a number only, do not write chairs after the number and if the number is a fraction, enter it as a decimal
For example: if the answer is 8 chairs, enter 8 or if the answer is 1/4 chairs, enter 0.25.
6)
After the trade, how many tables does the US consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
7)
After the trade, how many chairs does the US consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
8)
After the trade, how many tables does the Netherlands consume?
Hint: enter a number only, do not write tables after the number
Example: if the answer is 20 tables, enter 20
9)
After the trade, how many chairs does the Netherlands consume?
Hint: enter a number only, do not write chairs after the number
Example: if the answer is 20 chairs, enter 20
