5. Suppose that when Japan puts all of its resources into the production of textiles it can produce 250,000 units of textiles and if it puts all of its resources into furniture it can produce 500,000 units of furniture. If Vietnam puts all of its resources into textiles it can produce 60,000 units of textiles and if it puts all of its resources into the production of furniture it can produce 30,000 units of furniture. Draw the Production Possibilities curve for each country and answer the following questions. a. What is the opportunity cost of one unit of textile and one unit of furniture for each country? b. Which country has the absolute advantage to produce textiles? Which country has the absolute advantage to produce and furniture? c. Which country has the comparative advantage to produce textiles? Which country has the comparative advantage to produce and furniture?

5. Suppose that when Japan puts all of its resources into the production of textiles it can produce 250,000 units of textiles and if it puts all of its resources into furniture it can produce 500,000 units of furniture. If Vietnam puts all of its resources into textiles it can produce 60,000 units of textiles and if it puts all of its resources into the production of furniture it can produce 30,000 units of furniture. Draw the Production Possibilities curve for each country and answer the following questions. a. What is the opportunity cost of one unit of textile and one unit of furniture for each country? b. Which country has the absolute advantage to produce textiles? Which country has the absolute advantage to produce and furniture? c. Which country has the comparative advantage to produce textiles? Which country has the comparative advantage to produce and furniture?

Name: 5. Suppose that when Japan puts all of its resources into the product
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Description: 5. Suppose that when Japan puts all of its resources into the production of textiles it can produce250,000 units of textiles and if it puts all of its resources into furniture it can produce 500,000 unitsof furniture. If Vietnam puts all of its reso

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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