10 pts Using the table below and assuming constant costs of production between the United States and China, figure the opportunity costs for each country in terms of steel and aluminum. [Hint; this is like the farmer and rancher example and the others we discussed in Chapter 21. Steel and Aluminum Production United States China Steel (tons) Aluminum (tons) 1200 1500 800 500 United States: 1 ton of aluminum costs 1 ton of steel costs tons of steel. tons of aluminum. China: 1 ton of aluminum costs 1 ton of steel costs tons of steel. tons of aluminum.
10 pts Using the table below and assuming constant costs of production between the United States and China, figure the opportunity costs for each country in terms of steel and aluminum. [Hint; this is like the farmer and rancher example and the others we discussed in Chapter 21. Steel and Aluminum Production United States China Steel (tons) Aluminum (tons) 1200 1500 800 500 United States: 1 ton of aluminum costs 1 ton of steel costs tons of steel. tons of aluminum. China: 1 ton of aluminum costs 1 ton of steel costs tons of steel. tons of aluminum.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 35P: If trade increases world GDP by 1 per year, what is the global impact of this increase over 10...
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
Transcribed Image Text:10 pts
Using the table below and assuming constant costs of production between the United States
and China, figure the opportunity costs for each country in terms of steel and aluminum.
[Hint; this is like the farmer and rancher example and the others we discussed in Chapter 21.
Steel and Aluminum
Production
United States China
Steel (tons)
Aluminum (tons)
1200
1500
800
500
United States: 1 ton of aluminum costs
1 ton of steel costs
tons of steel.
tons of aluminum.
China:
1 ton of aluminum costs
1 ton of steel costs
tons of steel.
tons of aluminum.
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