1. Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. a) Which country has the comparative advantage in food? In fuel? Explain. b) Which good(s) should each country specialize in? c) Discuss the benefits of specialization for each country.

Q: Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations…

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10…

A: What rate the commodities will be exchanged in the international trade it is given by classical…

Q: C O O O Suppose that Canada can make 45 kilograms of cheese or 60 bottles of wine with one year's…

A: In order to solve this problem, let us first understand the difference between absolute and…

Q: The table shows the units of output a worker can produce per hour in Germany and Korea for two…

A: A country has a comparative advantage if it can produce an item or service at a lower/less…

Q: Y 100 Country A X Y 40 Country B 40 X 20 a) How much of Good Y will Country B produce if they…

A: Opportunity cost is value of next best alternative use of resources. In our context, opportunity…

Q: ase see below. Need help with this.

A: Comparative advantage arises when the country produces good at lower opportunity cost than other…

Q: In one hour, Sue can produce 90 caps or 6 jackets, and Tessa can produce 20 caps or 4 jackets. Thus,…

A: In one hour, Sue can produce 90 caps or 6 jackets Sue's opportunity cost of producing caps in terms…

Q: Econ Land is trading corn in exchange for computers with the Republic of Trade now (you might…

A: The transfer of services and goods that takes place between individuals or entities being done in…

Q: Country A Country B 200 Corn 600 150 375 t00 50 50 75100 150 200 25 cars 50 75 100 cars a) What is…

A: The opportunity cost is the difference between the time spent studying and the money spent on…

Q: a) What is a tariff ? Does a tariff have a result from an import quota? b) Suppose a tariff allowed…

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session.…

Q: The U.S. and Mexico both produce vehicles and tons of plastic, which are sold for the same price in…

A: The opportunity cost represents the potential benefits that one has to give up while choosing an…

Q: Question 1 Consider the PPF for US and China as shown below in the diagram. Quantity of Computers 20…

A: International trade is the trade between multiple nations. Trade is a result of varied opportunity…

Q: Suppose Argentina (A) and Bolivia (B) only trade with each other and they both produce the same two…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Suppose that each U.S. worker can produce 8 units of food or 2 units of clothing daily. In Fredonia,…

A: Absolute advantage refers to the ability of a country to produce goods more efficiently or more…

Q: Suppose there are two countries: Korea and Japan. These countries can each produce two goods; TV and…

A: There are two countries with different marginal productivity for Tv and pens

Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…

A: Comparative advantage refers to the phenomenon where the country can produce the good with the…

Q: a)Identify an example of absolute advantage relative to the United States from your data tables. Be…

A: (a) The U.S take a shorter time to produce the products like corn, citrus, apparel, and computer…

Q: SY 'I commodities: coconuts and passion fruits. The table below contains the amount of each…

A: Given that both countries have 180 hours of labor available we can calculate maximum production of…

Q: A country has an absolute advantage in the production of a good if it can _____ of the good than…

A: A country is said to have absolute advantage in producing specific good or service if it can produce…

Q: wine SERE54321 90 80 70 60 50 40 30 20 10 PPF Portugal CPF 0 0 10 20 30 40 50 60 cloth wine 90…

A: PPF stands for Production Possibility Frontier, which is a graphical representation showing the…

Q: 1)  What does it mean if a country can produce something at a lower opportunity cost, and why would…

A: Opportunity cost is the money value of the next best alternative that is foregone by the individual…

Q: Argentina can produce 150 pounds of beef or 20 cars; in contrast the United States can produ pounds…

A: Every decision involves an opportunity cost. In order to consume more of one good, the other has to…

Q: A market that is operating efficiently maximizes producer surplus. maximizes total surplus. O…

A: Hey, thank you for the question, since there is multiple question posted, according to our policy we…

Q: a) Which country has an absolute advantage in bananas? In wheat? b) What is the relative price of…

A: Absolute advantage: When a country or a person can produce more of a good or service in less time…

Q: Suppose that country A using one unit of labor can produce 80 pounds of apples or 20 pounds of…

A: When manufacturing a specific good, agents in an economic model have a comparative advantage over…

Q: Show on the PPF how both Germany and France gain from trade. B) How many units of apples and…

A:

Q: Consider 2 countries (the United States and the France) that use input such as labor to produce 2…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: In the following table, enter each country's production decis on the third row of the table (marked…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…