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31.

Question 43 and 44 refer to the table below. Suppose there are only two countries, Country A and Country B. The output of bananas and shoes per unit of input of the two countries are as follows:

Bananas (Units)Shoes (Units)
Country A4OR12
Country B2OR4

There are 4 units of resources in each country. Before trade, both countries use 1 unit of input to produce bananas and 3 units to produce shoes. If complete specialization takes place in the two countries, what will be the change in the total output of bananas and shoes of the two countries?

32.

If Country X can produce the same amount of each good with less resources than Country Y, then

33.

Suppose the production of cars and shirts in Mainland China and in the U.S.A. is as follows:

One unit of resources can produce
Car (units)Shirts (units)
Mainland China1OR4
U.S.A.2OR3

Suppose Hong Kong is willing to exchange 45 units of shirts for 9 units of cars. Under free trade, in order to obtain the maximum gain per unit of export/import,

34.

Given a unit of input, the amount of output produced by Countries A and B are shown below:

Garment (units)Shoes (units)
Country A2OR6
Country B4OR8

Which of the following is/are true?

(1)The opportunity cost of producing shoes in Country B is lower than that of Country A.
(2)Country B enjoys absolute advantage in the production of both goods.
(3)If trading opportunities were opened up, Country B would export garment and import shoes.
35.

A country will gain from international trade if

36.

Which of the following economic principles can best explain why a doctor, who is the fastest typist in town, chooses to employ a typist to do all the typing for him?

37.

If a country has a comparative advantage in good X, it will

38.

Suppose in Country A one unit of resources can produce either 1 unit of X or 3 unit of Y. If from trade 1 unit of X can exchange for 2 units of Y, Country A will export ______ and gain ______ for each unit of export.

39.

Suppose a country has an absolute advantage in good X. Which of the following is correct?

40.

The following table shows the production of two goods in two countries:

One unit of resources can produce
ClocksToys
Country A2OR4
Country B6OR8

Suppose 1 unit of clocks can be exchanged for 2 units of toys through trade,

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