a) Which nation has the absolute advantage in each good? b) Fill in the blanks in the table below, assuming that one unit of labor is transferred in each country towards the good in which it has the absolute advantage.
a) Which nation has the absolute advantage in each good? b) Fill in the blanks in the table below, assuming that one unit of labor is transferred in each country towards the good in which it has the absolute advantage.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Practice Pack
![MTN
".|“lE 260B/s O CN 12% O 17:08
4G
4G
Vodafone GH|Stay Safe
The outputs per laborer per day in the production
of computers and autos in Nation 1 and in Nation
2 are given in the table below.
Output per Laborer
Nation 1
Nation 2
Autos
10
1
Computers
1
20
a) Which nation has the absolute advantage in
each good?
b) Fill in the blanks in the table below, assuming
that one unit of labor is transferred in each country
towards the good in which it has the absolute
advantage.
Changes in Production from Reallocating One Unit
of Labor
Nation 1 Nation 2 World
Change in Production of
Autos
Change in Production of
Computers
|](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ec97805-8d51-4378-a846-9cda0f2c7fd5%2F6f30d41c-c683-4b7b-a006-6e52c446f274%2Fh78jkl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:MTN
".|“lE 260B/s O CN 12% O 17:08
4G
4G
Vodafone GH|Stay Safe
The outputs per laborer per day in the production
of computers and autos in Nation 1 and in Nation
2 are given in the table below.
Output per Laborer
Nation 1
Nation 2
Autos
10
1
Computers
1
20
a) Which nation has the absolute advantage in
each good?
b) Fill in the blanks in the table below, assuming
that one unit of labor is transferred in each country
towards the good in which it has the absolute
advantage.
Changes in Production from Reallocating One Unit
of Labor
Nation 1 Nation 2 World
Change in Production of
Autos
Change in Production of
Computers
|
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Includes step-by-step video
Learn your way
Includes step-by-step video
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education