10:39 PM Mon Jan 30XnoOננטHIST 355 Race and Sex #2 Gutierrez (discussion questi... X●●●HW1.pdfGermanyJapanOf) Given all the information above, which country has a comparative advantagein producing cars? Which country has a comparative advantage in producinggrain? Why?HW1.pdfg) Both countries will spend half of each country's workers produce cars and halfproduce grain. Complete the following table with the quantities of carsproduced and consumed in each country if there is no trade.Car Produced andConsumed (million)Tons of Grain Producedand Consumed (million)h) If each country only produces the good in which they have a comparativeadvantage and then traded 300 million tons of grain for 200 million cars, willboth countries be better off? Why?71%te 10:39 PM Mon Jan 30XnoO1 of 5HIST 355 Race and Sex #2 Gutierrez (discussion questi...C1000Grains (millions)●●●HW1.pdf1. One German worker can produce either 5 cars or 10 tons of grain a year. OneJapanese worker can produce either 4 cars or 5 tons of grain a year. To keep thingssimple, assume that each country has 100 million workers.GermanyJapan500a) Complete the following table with the number of workers needed to makeone car or one ton of grain in Germany and JapanWorkers Needed to make1 CarO1/51/4X= 1.25 carsHW1.pdfb) Graph the production possibilities frontier (PPF) for German economy aswell as the PPF for Japanese economy in the same graph. Carefully label andidentify the endpoint in your graphs.1/101/51 Ton of Grain500 million cars6 Cars: 5x100 m =Grain : 10*100=1000 million tonsJapan Cars: 4×100 = 400 milGrain S* 100 = 500 mil tons400 So Cars (millionsc) In Germany, what is the opportunity cost of producing a car? What is theopportunity cost of producing a ton of grain? Show your work.Car: 5/10 = 0.5 GrainGrain: 10/5= 2 carsd) In Japan, what is the opportunity cost of producing a car? a ton of grain? Showyour work.Car: 4/5=0.8 grainhrain : 5/471%te

Comparative advantage is when a country is able to produce a good at a lower opportunity cost as…

f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Tons of Grain Produced Consumed (million) and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?

f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Tons of Grain Produced Consumed (million) and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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