10:39 PM Mon Jan 30XnoOננטHIST 355 Race and Sex #2 Gutierrez (discussion questi... X●●●HW1.pdfGermanyJapanOf) Given all the information above, which country has a comparative advantagein producing cars? Which country has a comparative advantage in producinggrain? Why?HW1.pdfg) Both countries will spend half of each country's workers produce cars and halfproduce grain. Complete the following table with the quantities of carsproduced and consumed in each country if there is no trade.Car Produced andConsumed (million)Tons of Grain Producedand Consumed (million)h) If each country only produces the good in which they have a comparativeadvantage and then traded 300 million tons of grain for 200 million cars, willboth countries be better off? Why?71%te 10:39 PM Mon Jan 30XnoO1 of 5HIST 355 Race and Sex #2 Gutierrez (discussion questi...C1000Grains (millions)●●●HW1.pdf1. One German worker can produce either 5 cars or 10 tons of grain a year. OneJapanese worker can produce either 4 cars or 5 tons of grain a year. To keep thingssimple, assume that each country has 100 million workers.GermanyJapan500a) Complete the following table with the number of workers needed to makeone car or one ton of grain in Germany and JapanWorkers Needed to make1 CarO1/51/4X= 1.25 carsHW1.pdfb) Graph the production possibilities frontier (PPF) for German economy aswell as the PPF for Japanese economy in the same graph. Carefully label andidentify the endpoint in your graphs.1/101/51 Ton of Grain500 million cars6 Cars: 5x100 m =Grain : 10*100=1000 million tonsJapan Cars: 4×100 = 400 milGrain S* 100 = 500 mil tons400 So Cars (millionsc) In Germany, what is the opportunity cost of producing a car? What is theopportunity cost of producing a ton of grain? Show your work.Car: 5/10 = 0.5 GrainGrain: 10/5= 2 carsd) In Japan, what is the opportunity cost of producing a car? a ton of grain? Showyour work.Car: 4/5=0.8 grainhrain : 5/471%te

f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Tons of Grain Produced Consumed (million) and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?

f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Tons of Grain Produced Consumed (million) and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 28 The table shows the maximum quantity of cars or motorcycles that can be produced by two countries, X and Y, using equal amounts of resources. Motorcycles Cars 10 60 20 80 Based on the data in the table, which of the following is true? A B D Country X Country Y E Country X has a comparative advantage in producing cars. Country Y has a comparative advantage in producing cars. Country X has an absolute advantage in producing cars. Country X has an absolute advantage in producing motorcycles. Country Y has a comparative advantage in producing motorcycles.
Suppose now that Sylvania has a comparative advantage in the production of coffee. Again, Maldonia and Sylvania exchange 12 million pounds of lemons for 12 million pounds of coffee. The following graph shows the PPF for Sylvania, as well as its initial consumption at point A. Place a black point (cross symbol) on the following graph to indicate Sylvania's consumption after trade. 48 2 42 COFFEE (Millions of pounds) 38 PPF 30 24 18 122 O 0 6 12 Sylvania A 38 42 48 24 30 18 LEMONS (Millions of pounds) + Consumption After Trade ? <--Do graph After trade, Sylvania consumes million pounds of lemons as well as million pounds of coffee. 9, 12, 18, 24 9, 12, 18, 24 True or False: Without engaging in international trade, Maldonia and Sylvaniawould not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O True O False
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