2. 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 4 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 absolute advantage in production of food? c. Which country has absolute advantage in production of fun? d. Which country has comparative advantage in production of food? e. Which country has comparative advantage in production of fun? f. Which country will export food? g. Which country will export fun?

2. 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 4 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 absolute advantage in production of food? c. Which country has absolute advantage in production of fun? d. Which country has comparative advantage in production of food? e. Which country has comparative advantage in production of fun? f. Which country will export food? g. Which country will export fun?

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 6PA

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Question

2. 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 4 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 absolute advantage in production of food?
c. Which country has absolute advantage in production of fun?
d. Which country has comparative advantage in production of food?
e. Which country has comparative advantage in production of fun?
f. Which country will export food?
g. Which country will export fun?

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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?
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