1. With a given quantity of economic resources, the US can produce 3 units of food or 8 units of fun. With the same quantity of economic resources, Japan can produce 2 units of food or 6 units of fun. Assuming that the economic resources are of the same quality in both countries, a. Which country has absolute advantage in production of food and fun? b. Which country has comparative advantage in production of food? c. Which country has comparative advantage in production of fun? d. Which country will export food? e. Which country will export fun?

1. With a given quantity of economic resources, the US can produce 3 units of food or 8 units of fun. With the same quantity of economic resources, Japan can produce 2 units of food or 6 units of fun. Assuming that the economic resources are of the same quality in both countries, a. Which country has absolute advantage in production of food and fun? b. Which country has comparative advantage in production of food? c. Which country has comparative advantage in production of fun? d. Which country will export food? e. Which country will export fun?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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