11. which of these would be least likely to increase economic growth?\na. an increase in tariffs to protect…

11. which of these would be least likely to increase economic growth?\na. an increase in tariffs to protect domestic industries from foreign competition\nb. an expansion of financial aid options to college students\nc. an increase in investment in infrastructure such as new roads and rail lines\nd. protecting intellectual property rights (such as patents) to provide incentives for innovation\n12. the table shows the amount of cherries or apples that chile and argentina can produce using one day of labor. the opportunity cost of producing 1 cherry is ____ in chile and ____ in argentina. ____ has a comparative advantage in cherry production.\n| country | cherries (per worker per day) | apples (per worker per day) |\n| ---- | ---- | ---- |\n| chile | 80 | 40 |\n| argentina | 60 | 20 |\na. 2 apples; 3 apples; chile\nb. 0.5 apple; 0.33 apple; argentina\nc. 2 apples; 3 apples; argentina\nd. 0.5 apple; 0.33 apple; chile\n13. when two countries specialize and trade based on their comparative advantage\na. both countries would move to a different point on the existing ppf.\nb. the country with the greater comparative advantage moves beyond its ppf while the other falls below it.\nc. both countries remain at their original point on the ppf because trade primarily affects consumption.\nd. both countries are able to consume at a point beyond the original ppf.\n14. (figure) what would be a reason an economy is operating at point d?

11. which of these would be least likely to increase economic growth?\na. an increase in tariffs to protect domestic industries from foreign competition\nb. an expansion of financial aid options to college students\nc. an increase in investment in infrastructure such as new roads and rail lines\nd. protecting intellectual property rights (such as patents) to provide incentives for innovation\n12. the table shows the amount of cherries or apples that chile and argentina can produce using one day of labor. the opportunity cost of producing 1 cherry is ____ in chile and ____ in argentina. ____ has a comparative advantage in cherry production.\n| country | cherries (per worker per day) | apples (per worker per day) |\n| ---- | ---- | ---- |\n| chile | 80 | 40 |\n| argentina | 60 | 20 |\na. 2 apples; 3 apples; chile\nb. 0.5 apple; 0.33 apple; argentina\nc. 2 apples; 3 apples; argentina\nd. 0.5 apple; 0.33 apple; chile\n13. when two countries specialize and trade based on their comparative advantage\na. both countries would move to a different point on the existing ppf.\nb. the country with the greater comparative advantage moves beyond its ppf while the other falls below it.\nc. both countries remain at their original point on the ppf because trade primarily affects consumption.\nd. both countries are able to consume at a point beyond the original ppf.\n14. (figure) what would be a reason an economy is operating at point d?

Answer

Brief Explanations:

Question 11:

Tariffs can lead to inefficiencies, higher - priced goods, and retaliation from other countries, which can limit trade and economic growth. Financial aid to students can increase human capital, infrastructure investment can improve productivity, and protecting intellectual property can encourage innovation, all of which are beneficial for economic growth.

Question 12:

The opportunity cost of producing 1 cherry in Chile is calculated as $\frac{40}{80}=0.5$ apples. In Argentina, it is $\frac{20}{60}\approx0.33$ apples. Argentina has a lower opportunity cost in cherry production, so it has a comparative advantage.

Question 13:

When countries specialize and trade based on comparative advantage, they can consume at a point beyond their original production - possibility frontier (PPF) because they can access a greater variety and quantity of goods through trade.

Answer:

  1. A. an increase in tariffs to protect domestic industries from foreign competition
  2. B. 0.5 apple; 0.33 apple; Argentina
  3. D. both countries are able to consume at a point beyond the original PPF