Pleas complete this question from Ricardian theory of trade. Please answer from option 4 to 7. Fit to widthHW#1: Ricardian Theory of Trade - AssignmentUse the following assumptions to solve this assignment:1. There are three countries - Argentina, Britain and Canada.2. Each country produces and consumes two kinds of goods – crude oil and beef.3. All countries make their goods from a single type of input – labor- and eachcountry has 60 hours of labor available to produce crude oil and beef.4. Each country demands 2 barrels of crude oil. This assumption simply means that acountry must have exactly 2 barrels of crude oil – it may produce themdomestically, it may import them from abroad, or it makes some domestically andimports the rest.5. Countries produce goods using the technology described in the table below:TechnologyHours of labor needed to produce one unit of goodArgentinaBritainCanadabarrel of crude oilpound of beef203012210Using the above assumptions, answer the following questions:1. Calculate the quantities of crude oil and beef produced in each country in autarky(when they do not trade and each country produces its own crude oil and beef)Quantities produced ArgentinaBritainCanadaTotalAutarky barrel of crude oil(No trade) pound of beef2. Order the countries according to their absolute advantage in production of crudeoil3. Order the countries according to their absolute advantage in production of beef4. Consider the case where countries are free to specialize and trade. In the tablebelow calculate each country's opportunity cost of producing one unit of eachgood.Argentina20BritainCanadabarrel of crude oil3012pound of beefOC of 1 barrel of oilOC of 1 pond of beef5. Calculate the quantities of crude oil and beef produced in each country, consistentwith the country's comparative advantage.210 Quantities produced Argentinabarrel of crude oilpound of beefBritainCanadaTotalTrade6. Graph each country's own PPF. For consistency, plot crude oil on the horizontalaxis.7. Graph the PPF for all three countries combined.

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4. Consider the case where countries are free to specialize and trade. In the table below calculate each country's opportunity cost of producing one unit of each good. Argentina Britain Canada barrel of crude oil pound of beef OC of I barrel of oil OC of I pond of beef 20 30 12 2 10

4. Consider the case where countries are free to specialize and trade. In the table below calculate each country's opportunity cost of producing one unit of each good. Argentina Britain Canada barrel of crude oil pound of beef OC of I barrel of oil OC of I pond of beef 20 30 12 2 10

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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Question

Pleas complete this question from Ricardian theory of trade. Please answer from option 4 to 7.

Fit to width
HW#1: Ricardian Theory of Trade - Assignment
Use the following assumptions to solve this assignment:
1. There are three countries - Argentina, Britain and Canada.
2. Each country produces and consumes two kinds of goods – crude oil and beef.
3. All countries make their goods from a single type of input – labor- and each
country has 60 hours of labor available to produce crude oil and beef.
4. Each country demands 2 barrels of crude oil. This assumption simply means that a
country must have exactly 2 barrels of crude oil – it may produce them
domestically, it may import them from abroad, or it makes some domestically and
imports the rest.
5. Countries produce goods using the technology described in the table below:
Technology
Hours of labor needed to produce one unit of good
Argentina
Britain
Canada
barrel of crude oil
pound of beef
20
30
12
2
10
Using the above assumptions, answer the following questions:
1. Calculate the quantities of crude oil and beef produced in each country in autarky
(when they do not trade and each country produces its own crude oil and beef)
Quantities produced Argentina
Britain
Canada
Total
Autarky barrel of crude oil
(No trade) pound of beef
2. Order the countries according to their absolute advantage in production of crude
oil
3. Order the countries according to their absolute advantage in production of beef
4. Consider the case where countries are free to specialize and trade. In the table
below calculate each country's opportunity cost of producing one unit of each
good.
Argentina
20
Britain
Canada
barrel of crude oil
30
12
pound of beef
OC of 1 barrel of oil
OC of 1 pond of beef
5. Calculate the quantities of crude oil and beef produced in each country, consistent
with the country's comparative advantage.
2
10

Quantities produced Argentina
barrel of crude oil
pound of beef
Britain
Canada
Total
Trade
6. Graph each country's own PPF. For consistency, plot crude oil on the horizontal
axis.
7. Graph the PPF for all three countries combined.

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