Use the following assumptions to solve this assignment: 1. There are three countries - Argentina, Britain and Canada. 2. Each country produces and consumes two kinds of goods - crude oil and beef. 3. All countries make their goods from a single type of input - labor- and each country has 60 hours of labor available to produce crude oil and beef. 4. Each country demands 2 barrels of crude oil. This assumption simply means that a country must have exactly 2 barrels of crude oil – it may produce them domestically, it may import them from abroad, or it makes some domestically and imports the rest. 5. Countries produce goods using the technology described in the table below: Technology Hours of labor needed to produce one unit of good Argentina 20 Britain Canada barrel of crude oil pound of beef 30 12 10 ng the above assumptions, answer the following questions: 1. Calculate the quantities of crude oil and beef produced in each country in autarky (when they do not trade and each country produces its own crude oil and beef) Total Quantities produced Argentina Britain Canada Autarky barrel of crude oil (No trade) pound of beef 2. Order the countries according to their absolute advantage in production of crude oil

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Please read the image it contains all the information necessary to solve this question of Ricardian theory of trade.
Expert Q&A
Done
please solve the question using the information given of the
following assumption in the first image below and solve for
option 1 to 7. This is just one question with 7 parts. thank
you.
HW#1: Ricardian Theory of Trade - Assignment
Use the following assumptions to solve this assignment:
1. There are three countries - Argentina, Britain and Canada.
2. Each country produces and consumes two kinds of goods – crude oil and beef.
3. All countries make their goods from a single type of input – labor - and each
country has 60 hours of labor available to produce crude oil and beef.
4. Each country demands 2 barrels of crude oil. This assumption simply means that a
country must have exactly 2 barrels of crude oil - it may produce them
domestically, it may import them from abroad, or it makes some domestically and
imports the rest.
5. Countries produce goods using the technology described in the table below:
Technology
Hours of labor needed to produce one unit of good
Argentina
Britain
Canada
12
barrel of crude oil
pound of beef
20
30
2
10
Using the above assumptions, answer the following questions:
1. Calculate the quantities of crude oil and beef produced in each country in autarky
(when they do not trade and each country produces its own crude oil and beef)
Canada
Quantities produced Argentina
barrel of crude oil
Britain
Total
Autarky
(No trade) pound of beef
2. Order the countries according to their absolute advantage in production of crude
oil
Transcribed Image Text:Expert Q&A Done please solve the question using the information given of the following assumption in the first image below and solve for option 1 to 7. This is just one question with 7 parts. thank you. HW#1: Ricardian Theory of Trade - Assignment Use the following assumptions to solve this assignment: 1. There are three countries - Argentina, Britain and Canada. 2. Each country produces and consumes two kinds of goods – crude oil and beef. 3. All countries make their goods from a single type of input – labor - and each country has 60 hours of labor available to produce crude oil and beef. 4. Each country demands 2 barrels of crude oil. This assumption simply means that a country must have exactly 2 barrels of crude oil - it may produce them domestically, it may import them from abroad, or it makes some domestically and imports the rest. 5. Countries produce goods using the technology described in the table below: Technology Hours of labor needed to produce one unit of good Argentina Britain Canada 12 barrel of crude oil pound of beef 20 30 2 10 Using the above assumptions, answer the following questions: 1. Calculate the quantities of crude oil and beef produced in each country in autarky (when they do not trade and each country produces its own crude oil and beef) Canada Quantities produced Argentina barrel of crude oil Britain Total Autarky (No trade) pound of beef 2. Order the countries according to their absolute advantage in production of crude oil
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