Econ 2202 Homework #2 Use the following information to answer questions 1-6. Consider two countries: France and Tunisia, who can produce sweaters and wine. In France it takes one worker to produce one sweater and one worker to produce a bottle of wine. In Tunisia it takes two workers to produce one sweater and three workers to produce a bottle of wine. Assume each country has 6,000 workers. 1. Who has the absolute advantage in the production of sweaters? 2. Who has the absolute advantage in the production of bottles of wine? 3. Who has the comparative advantage in the production of sweaters? 4. Who has the comparative advantage in the production of bottles of wine? 5. What should France specialize in to possibly benefit from trade? 6. What should Tunisia specialize in to possibly benefit from trade?
Econ 2202 Homework #2 Use the following information to answer questions 1-6. Consider two countries: France and Tunisia, who can produce sweaters and wine. In France it takes one worker to produce one sweater and one worker to produce a bottle of wine. In Tunisia it takes two workers to produce one sweater and three workers to produce a bottle of wine. Assume each country has 6,000 workers. 1. Who has the absolute advantage in the production of sweaters? 2. Who has the absolute advantage in the production of bottles of wine? 3. Who has the comparative advantage in the production of sweaters? 4. Who has the comparative advantage in the production of bottles of wine? 5. What should France specialize in to possibly benefit from trade? 6. What should Tunisia specialize in to possibly benefit from trade?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter18: Trading With Other Nations
Section: Chapter Questions
Problem 10AA
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Homework #2
Use the following information to answer questions 1-6.
Consider two countries: France and Tunisia, who can produce sweaters and wine.
In France it takes one worker to produce one sweater and one worker to produce
a bottle of wine. In Tunisia it takes two workers to produce one sweater and three
workers to produce a bottle of wine. Assume each country has 6,000 workers.
1. Who has the absolute advantage in the production of sweaters?
2. Who has the absolute advantage in the production of bottles of wine?
3. Who has the comparative advantage in the production of sweaters?
4. Who has the comparative advantage in the production of bottles of wine?
5. What should France specialize in to possibly benefit from trade?
6. What should Tunisia specialize in to possibly benefit from trade?
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