4. To produce 1 unit of cotton Country X uses 25 units of labor and Country Y uses 16 units of labor. To produce 1 unit of wheat Country X uses 12 units of labor and Country Y uses 9 units of labor. a. Which country has the absolute advantage in wheat production? Why? b. Which country has the comparative advantage in wheat production? Why?

4. To produce 1 unit of cotton Country X uses 25 units of labor and Country Y uses 16 units of labor. To produce 1 unit of wheat Country X uses 12 units of labor and Country Y uses 9 units of labor. a. Which country has the absolute advantage in wheat production? Why? b. Which country has the comparative advantage in wheat production? Why?

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Description: 4. To produce 1 unit of cotton Country X uses 25 units of labor and Country Y uses 16 units oflabor. To produce 1 unit of wheat Country X uses 12 units of labor and Country Y uses 9units of labor.a. Which country has the absolute advantage in wheat

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 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...

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4. To produce 1 unit of cotton Country X uses 25 units of labor and Country Y uses 16 units of
labor. To produce 1 unit of wheat Country X uses 12 units of labor and Country Y uses 9
units of labor.
a. Which country has the absolute advantage in wheat production? Why?
b. Which country has the comparative advantage in wheat production? Why?

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