2. American and Japanese workers can each produce 4 cars per year. An American worker can produce 10 tons of grain per year, whereas a Japanese worker can produce 5 tons of grain per year. To keep things simple, assume that each country has 100 million workers. a. For this situation, construct a table analogous to the table in Figure 1. b. Graph the production possibilities frontiers for the American and Japanese economies. c. For the United States, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of grain? Put this information in a table analogous to Table 1.

2. American and Japanese workers can each produce 4 cars per year. An American worker can produce 10 tons of grain per year, whereas a Japanese worker can produce 5 tons of grain per year. To keep things simple, assume that each country has 100 million workers. a. For this situation, construct a table analogous to the table in Figure 1. b. Graph the production possibilities frontiers for the American and Japanese economies. c. For the United States, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of grain? Put this information in a table analogous to Table 1.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 2PA

See similar textbooks

Related questions

Q: How do we calculate the sponsor's costs?

A: Sponsorship cost refers to the cost of supporting an event or economic activity for an agent in…

Q: The table shows a private open economy. All figures are in billions of dollars. Real GDP C+ lg Net…

A: The real GDP refers to the total goods and services produced in an economy in a given fiscal…

Q: What do the ethical implications that may arise when profits are the only focus of a business? Can…

A: Ethics basically refers to the morals that the business should follow while working. These are…

Q: An economy produces only food and fun. The table shows the quantities produced and prices in 2018…

A: Real GDP refers to the goods and services produced within a country over a period without…

Q: describe fertilizer/ what it is used for, etc

A: Answer: Fertilizer: a fertilizer is any natural or synthetic substance that is applied to soil or…

Q: How can we determine the Sponsor's Costs?

A: Sponsorship pricing is one of the complex processes as it involves multiple stages of assessment of…

Q: What is the time value of money?

A: Time value of money (TVM) is a concept that emphasizes on the opportunity cost of money, and…

Q: Write a brief on SDGs 7,8 and 13. How it works if there is a hydro power plant. Maximum 1000

A: The Sustainable Development Goals (SDGs) linked to global goals aimed at becoming a "framework for…

Q: The EPA says the value of a human life is $9.4 million, measured from birth to death. If life…

A: According to the information given, the value of a human life is $9.4 million measured from birth to…

Q: Executive Letter of one page about the Engineering Financial Economic

A: An Executive Letter is a formal written communication in a business. It is a type of correspondence…

Q: I cannot understand anything written on this paper, would you please be able to type it?

A: This graph is actually showing the relationship between real exchange rate and nominal exchange rate…

Q: Funding details provided Satisfactory Fair Unsatisfactory explain and give a rubric.50 words

A: A rubric is a systematic, standardized collection of standards or criteria used in various…

Q: 9. Toasters again! The demand and supply schedule for toasters, is given below. a. Graph the supply…

A: Equilibrium is achieved where Qs=Ad Thus, Q*= 40 mn units P*=$40

Q: What cultural aspects (language, religion, customs) a company must have in the area of technology

A: Technology and culture seems growing with changes in centuries. Its moving together. Technology has…

Q: Design a process chart for printing a short documenton a laser printer at an office. Unknown to you,…

A: given data Design a process chart for printing a short documenton a laser printer at an office.…

Q: What benefits are their in operating a business to consumer online business model for consumers and…

A: The objective of this question is to understand the benefits of operating a business to consumer…

Question

Please no written by hand

2. American and Japanese workers can each produce
4 cars per year. An American worker can produce
10 tons of grain per year, whereas a Japanese worker
can produce 5 tons of grain per year. To keep things
simple, assume that each country has 100 million
workers.
a. For this situation, construct a table analogous to
the table in Figure 1.
b. Graph the production possibilities frontiers for the
American and Japanese economies.
c. For the United States, what is the opportunity
cost of a car? Of grain? For Japan, what is the
opportunity cost of a car? Of grain? Put this
information in a table analogous to Table 1.
d. Which country has an absolute advantage in
producing cars? In producing grain?
e. Which country has a comparative advantage in
producing cars? In producing grain?
f. Without trade, half of each country's workers
produce cars and half produce grain. What quantities
of cars and grain does each country produce?
g. Starting from a position without trade, give an
example in which trade makes each country better
off.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: International trade

VIEW

Step 2: Explanation

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
How does comparative advantage lead to gains from trade?
American and Japanese workers can each produce 4 cars a year. An American worker canproduce 10 tons of grain a year, whereas aJapanese workers can produce 5 tons of grain ayear. To keep things simple, assume that eachcountry has 100 million workers.a. For this situation, construct a table analogousto the table in Figure 1.b. Graph the production possibilities frontier ofthe American and Japanese economies.c. For the United States, what is the opportunitycost of a car? Of grain? For Japan, what is theopportunity cost of a car? Of grain? Put thisinformation in a table analogous to Table 1.d. Which country has an absolute advantage inproducing cars? In producing grain?e. Which country has a comparative advantagein producing cars? In producing grain?f. Without trade, half of each country’s workersproduce cars and half produce grain. Whatquantities of cars and grain does each country produce?g. Starting from a position without trade, givean example in which trade makes each country better…
C O O O Suppose that Canada can make 45 kilograms of cheese or 60 bottles of wine with one year's worth of labour. France can make 30 kilograms of cheese or 54 bottles of wine with one year's worth of labour. What can we conclude from these numbers? a. Canada has a comparative advantage in the production of wine. b. Canada has an absolute advantage in the production of cheese. c. France has an absolute advantage in the production of wine. d. France has a comparative advantage in the production of cheese.
2. In the USA 1 unit of labor can produce 50 cars while in Canada 1 unit of labor can produce5 cars. The total amount of labor in each country is L = 100. Which one of these statements iscorrect?A. Canada has comparative advantage on the production of cars.B. The USA has comparative advantage on the production of cars.C. Since their production possibility frontiers are the similar neither country has comparativeadvantage on the production of cars.D. Not enough information to answer this question.
None
Please as soon as possible.thank you
Need help with these two questions. They look simuilar but they're differnt questions. Thanks for the help!
Table 3-3 Maria Courtney Labour hours needed to make one unit: Sweater 40 20 Coat 8 5 Amount produced in 40 hours: Sweater 1 2 Coat 5 8 Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in? a Maria has an absolute advantage in coats, and Courtney has a comparative advantage in sweaters. Ob. Maria has an absolute advantage in both goods, and Courtney has a comparative advantage in coats. OC. Maria has an absolute advantage in sweaters, and Courtney has a comparative advantage in sweaters. Od. Maria has an absolute advantage in neither good, and Courtney has a comparative advantage in sweaters. CLEAR MY CHOICE
For this question, only consider Korea and the United States. If the United States is better at producing agricultural goods and technological goods, then_ It would be impossible for the United States to benefit from trade with Korea since the United States have an absolute advantage in the production of both good A. B. It would be impossible for the United States to have an absolute advantage over another country in the production of both products. C. The United States should specialize in the production of technological goods if Korea has a comparative advantage in the production of agricultural goods. The United States should specialize in the product in which it has an absolute advantage. O D.