*1.6 The countries of Orion and Scorpius are small mountainous nations. Both produce granite and blueberries. Each nation has a labor force of 800. The following table gives production per month for each worker in each country. Assume productivity is constant and identical for each worker in each country. Tons of Granite Bushels of Blueberries Orion workers 6 18 Scorpius workers 3 12 Productivity of one worker for one month a. Which country has an absolute advantage in the produc- tion of granite? Which country has an absolute advantage in the production of blueberries? b. Which country has a comparative advantage in the production of granite? of blueberries? c. Sketch the ppf's for both countries.

Principles of Economics 2e
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Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter20: Economic Growth
Section: Chapter Questions
Problem 34P: Say that the average worker in Canada has a productivity level of 30 per hour while the average...
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*1.6 The countries of Orion and Scorpius are small
mountainous nations. Both produce granite and
blueberries. Each nation has a labor force of 800. The
following table gives production per month for each
worker in each country. Assume productivity is constant
and identical for each worker in each country.
Tons of
Granite
Bushels of
Blueberries
Orion workers
6
18
Scorpius workers
3
12
Productivity of one worker for one month
a. Which country has an absolute advantage in the produc-
tion of granite? Which country has an absolute advantage
in the production of blueberries?
b. Which country has a comparative advantage in the
production of granite? of blueberries?
c. Sketch the ppf's for both countries.
Transcribed Image Text:*1.6 The countries of Orion and Scorpius are small mountainous nations. Both produce granite and blueberries. Each nation has a labor force of 800. The following table gives production per month for each worker in each country. Assume productivity is constant and identical for each worker in each country. Tons of Granite Bushels of Blueberries Orion workers 6 18 Scorpius workers 3 12 Productivity of one worker for one month a. Which country has an absolute advantage in the produc- tion of granite? Which country has an absolute advantage in the production of blueberries? b. Which country has a comparative advantage in the production of granite? of blueberries? c. Sketch the ppf's for both countries.
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