Suppose that each country currently has 140 workers and each decides to transfer some amount of labor toward its area of comparative advantage. The United States transfers 15 workers away from socks toward producing cell phones. Thailand transfers 28 workers away from cell phones toward producing socks. What will be the new total output of cell phones for both countries combined? Country # of workers needed to produce 1,000 units- Socks # of workers needed to produce 1,000 units- Cell Phones United States 5 workers 1 worker Thailand 7 workers 4 workers Total Production Before Trade Country Current Sock Production Current Cell Phone Production United States 14,000 70,000 Thailand 10,000 17,500 Total 24,000 87,500
Suppose that each country currently has 140 workers and each decides to transfer some amount of labor toward its area of comparative advantage. The United States transfers 15 workers away from socks toward producing cell phones. Thailand transfers 28 workers away from cell phones toward producing socks. What will be the new total output of cell phones for both countries combined? Country # of workers needed to produce 1,000 units- Socks # of workers needed to produce 1,000 units- Cell Phones United States 5 workers 1 worker Thailand 7 workers 4 workers Total Production Before Trade Country Current Sock Production Current Cell Phone Production United States 14,000 70,000 Thailand 10,000 17,500 Total 24,000 87,500
Chapter21: International Trade And Finance
Section: Chapter Questions
Problem 2SQ
Related questions
Question
Suppose that each country currently has 140 workers and each decides to transfer some amount of labor toward its area of
What will be the new total output of cell phones for both countries combined?
| Country | # of workers needed to produce 1,000 units- Socks |
# of workers needed to produce 1,000 units- Cell Phones |
| United States | 5 workers | 1 worker |
| Thailand | 7 workers | 4 workers |
Total Production Before Trade
| Country | Current Sock Production | Current Cell Phone Production |
| United States | 14,000 | 70,000 |
| Thailand | 10,000 | 17,500 |
| Total | 24,000 | 87,500 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning