c. If the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the table below. Yin Yang Totals Machines Machines d. What are the gains from trade? Loaves of bread Loaves of bread
c. If the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the table below. Yin Yang Totals Machines Machines d. What are the gains from trade? Loaves of bread Loaves of bread
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
2. Answer letter c and D.
Transcribed Image Text:2
eBook
Mc
Graw
1080
The table below shows the labour productivity for the countries of Yin and Yang.
Yin
Yang
Yin
Yang
Totals
Machines
3
5
a. If the working populations of Yin and Yang are both 40 million, divided equally between the two industries in each country, how
many machines and loaves of bread (in millions) are currently being produced in Yin and Yang?
Machines
60
100
160
Yin
Yang
Totals
or
or
Loaves of
bread
12
Machines
Loaves of
bread
240
60
300
b. If the two countries decide to specialize, in which product does each country have a comparative advantage?
Yin: bread
Yang: machines
3
c. If the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the table
below.
Loaves of
bread
O Search
< Prev
2 of 6
Next >
O
Transcribed Image Text:6. if the two countries decide to specialize, in which product does each country have a comparative advantage?
Yin: bread
Yang: machines V
c. If the two countries specialize in the product in which they have a comparative advantage, show their total outputs in the table
below.
Yin
Yang
Totals
V
Machines
Machines
d. What are the gains from trade?
Loaves of
bread
Loaves of
bread
FS
O
F6
O Search
F8
< Prev
A
2 of 6
acer
F10
200
Next >
F11
F12
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