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Question: 5 the price of trade suppose that greece and austria...

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5. The price of trade Suppose that Greece and Austria both produce jeans and wine. Greeces opportunity cost of producing a bottle of wine is 3 pairs of jeans while Austrias opportunity cost of producing a bottle of wine is 11 pairs of jeans. By comparing the opportunity cost of producing wine in the two countries, you can tell that production of wine and ▼ has a comparative advantage in the has a comparative advantage in the production of jeans Suppose that Greece and Austria consider trading wine and jeans with each other. Greece can gain from specialization and trade as long as it receives more than ▼ of jeans for each bottle of wine it exports to Austria. Similarly, Austria can gain from trade as long as t receives more than ▼ of wine for each pair of jeans it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of jeans) would allow both Austria and Greece to gain from trade? Check all that apply. 13 pairs of jeans per bottle of wine 6 pairs of jeans per bottle of wine 2 pairs of jeans per bottle of wine 1 pair of jeans per bottle of wineAustria Greece1 pair 1/11 pair 1/3 pair 3 pairs 11 pairs

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