2. With a given quantity of economic resources, the US can produce 3 units of food or 8 units of fun. With the same quantity of economic resources, Japan can produce 4 units of food or 6 units of fun. Assuming that the economic resources are of the same quality in both countries, a. Which country has absolute advantage in production of food and fun? b. Which country has absolute advantage in production of food? c. Which country has absolute advantage in production of fun? d. Which country has comparative advantage in production of food? e. Which country has comparative advantage in production of fun? f. Which country will export food? g. Which country will export fun?
2. With a given quantity of economic resources, the US can produce 3 units of food or 8 units of fun. With the same quantity of economic resources, Japan can produce 4 units of food or 6 units of fun. Assuming that the economic resources are of the same quality in both countries, a. Which country has absolute advantage in production of food and fun? b. Which country has absolute advantage in production of food? c. Which country has absolute advantage in production of fun? d. Which country has comparative advantage in production of food? e. Which country has comparative advantage in production of fun? f. Which country will export food? g. Which country will export fun?
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 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....
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Transcribed Image Text:2. With a given quantity of economic resources, the US can produce 3 units of food or 8 units of
fun. With the same quantity of economic resources, Japan can produce 4 units of food or 6 units
of fun. Assuming that the economic resources are of the same quality in both countries,
a. Which country has absolute advantage in production of food and fun?
b. Which country has absolute advantage in production of food?
c. Which country has absolute advantage in production of fun?
d. Which country has comparative advantage in production of food?
e. Which country has comparative advantage in production of fun?
f. Which country will export food?
g. Which country will export fun?
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