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1. The economies of Canada and Mexico produce only fruit and timber. Each country has a labor force of 100. The following table gives the production per month for each labor in each country: Basket of fruit cubic feet of timber 20 10 60 20 a. Which country has absolute advantage in what commodity? b. Sketch the Production possibility curve for both countries (draw the PPC). c. Which country has comparative advantage in what production. If they specialize, what will be total production? Which country will produce what and what amount? Canada Mexico

1. The economies of Canada and Mexico produce only fruit and timber. Each country has a labor force of 100. The following table gives the production per month for each labor in each country: Basket of fruit cubic feet of timber 20 10 60 20 a. Which country has absolute advantage in what commodity? b. Sketch the Production possibility curve for both countries (draw the PPC). c. Which country has comparative advantage in what production. If they specialize, what will be total production? Which country will produce what and what amount? Canada Mexico

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...
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1. The economies of Canada and Mexico produce only fruit and timber. Each country has a labor force of 100. The following table gives the production per month for each labor in each country: Basket of fruit cubic feet of timber 20 10 20 60 a. Which country has absolute advantage in what commodity? b. Sketch the Production possibility curve for both countries (draw the PPC). c. Which country has comparative advantage in what production. If they specialize, what will be total production? Which country will produce what and what amount? Canada Mexico
Transcribed Image Text:1. The economies of Canada and Mexico produce only fruit and timber. Each country has a labor force of 100. The following table gives the production per month for each labor in each country: Basket of fruit cubic feet of timber 20 10 20 60 a. Which country has absolute advantage in what commodity? b. Sketch the Production possibility curve for both countries (draw the PPC). c. Which country has comparative advantage in what production. If they specialize, what will be total production? Which country will produce what and what amount? Canada Mexico
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