Assume that our world consists of only two countries: the United States and the Rest of the World (ROW). Both of these countries produce airplanes and computers. The amounts of each good produced during an hour in each country are provided in the table below. USROWAirplanes54Computers1510 Based on this table, who has the absolute advantage in airplanes? ______In computers? ______What is the opportunity cost of 1 airplane:in the US? __ _____________in the ROW? ______________

The US produces 5 Airplanes and 15 Computers in an hour. ROW produces 4 Airplanes and 10 Computers…

Answered: Assume that our world consists of only…

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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Assume that our world consists of only two countries: the United States and the Rest of the World (ROW). Both of these countries produce airplanes and computers. The amounts of each good produced during an hour in each country are provided in the table below.

	US	ROW
Airplanes	5	4
Computers	15	10

Based on this table, who has the absolute advantage in airplanes? ______

In computers? ______

What is the opportunity cost of 1 airplane:

in the US? __ _____________

in the ROW? ______________

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