Let suppose in the world there is two-country, Country X and Country Y. In country X there is only one worker A while in country Y the worker is B. And both can produce sugar and wheat. But the country B is specialized in producing wheat and the other one in sugar. Suppose that the A and the Beach work 40 hours a week and can devote this time to growing sugar, raising wheat, or a combination of the both. Person A can produce a pound of sugar in 10 hours and a pound of wheat in 20 hours. The B, who is more productive in both activities, can produce a pound of Sugar in 8 hours and a pound of meat in 1 hour. (a) Draw the Production Possibilities Frontiers for both workers? (b) Whose have an absolute and comparative advantage? (c) Why they move toward trade?
Let suppose in the world there is two-country, Country X and Country Y. In country X there is only one worker A while in country Y the worker is B. And both can produce sugar and wheat. But the country B is specialized in producing wheat and the other one in sugar. Suppose that the A and the Beach work 40 hours a week and can devote this time to growing sugar, raising wheat, or a combination of the both. Person A can produce a pound of sugar in 10 hours and a pound of wheat in 20 hours. The B, who is more productive in both activities, can produce a pound of Sugar in 8 hours and a pound of meat in 1 hour.
(a) Draw the Production Possibilities Frontiers for both workers?
(b) Whose have an absolute and
(c) Why they move toward trade?
(d) Graphically shows the
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