Directions: Calculate the per unit opportunity cost for soybeans and sugar in the United States and Brazil and then use that infomation to answer the questions that follow. Calculate the per unit opportunity cost of producing Soybeans Calculate the per unit opportunity cost of producing Sugar 5.4 Soybeans Sugar United States 108 tons 0.18 20 tons Brazil 86 tons 0.11 10 tons 8.6 2 Who has the absolute advantage in producing soybeans? Why? 3. Who has the comparative advantage in producing soybeans? Why (use data from the chart to explain your answer)? 4. Who has the comparative advantage in producing sugar? Why (use data from the chart to explain your answer)? 5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain your answer)? 6. What would need to happen for Brazil to benefit from the trade?
Directions: Calculate the per unit opportunity cost for soybeans and sugar in the United States and Brazil and then use that infomation to answer the questions that follow. Calculate the per unit opportunity cost of producing Soybeans Calculate the per unit opportunity cost of producing Sugar 5.4 Soybeans Sugar United States 108 tons 0.18 20 tons Brazil 86 tons 0.11 10 tons 8.6 2 Who has the absolute advantage in producing soybeans? Why? 3. Who has the comparative advantage in producing soybeans? Why (use data from the chart to explain your answer)? 4. Who has the comparative advantage in producing sugar? Why (use data from the chart to explain your answer)? 5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain your answer)? 6. What would need to happen for Brazil to benefit from the trade?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:soybeans.
Directions: Calculate the per unit opportunity cost for soybeans and sugar in the United States and
Brazil and then use that infommation to answer the questions that follow.
Calculate the per unit
opportunity cost of
producing Sugar
54
Calculate the
per
unit
Soybeans
opportunity cost of
producing Soybeans
0.18
Sugar
United States
108 tons
20 tons
Brazil
86 tons
0.11
10 tons
8.6
2 Who has the absolute advantage in producing soybeans? Why?
Who has the comparative advantage in producing soybeans? Why (use data from the chart to explain
your answer)?
3.
Who has the comparative advantage in producing sugar? Why (use data from the chart to explain
your answer)?
4.
5. Would the United States benefit from a trade? Why or why not (use data from the chart to explain your
answer)?
6. What would need to happen for Brazil to benefit from the trade?
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