Use the following assumptions to solve this assignment: 1. There are three countries - Argentina, Britain and Canada. 2. Each country produces and consumes two kinds of goods- crude oil and beef. 3. All countries make their goods from a single type of input - labor - and each country has 60 hours of labor available to produce crude oil and beef. 4. Each country demands 2 barrels of crude oil. This assumption simply means that a country must have exactly 2 barrels of crude oil - it may produce them domestically, it may import them from abroad, or it makes some domestically and imports the rest. 5. Countries produce goods using the technology described in the table below: Technology Hours of labor needed to produce one unit of good Argentina Britain Canada barrel of crude oil pound of beef 20 30 12 2 10 Using the above assumptions, answer the following questions: 1. Calculate the quantities of crude oil and beef produced in each country in autarky (when they do not trade and each country produces its own crude oil and beef) Total Quantities produced Argentina Britain Canada Autarky barrel of crude oil (No trade) pound of beef 2. Order the countries according to their absolute advantage in production of crude oil

Use the following assumptions to solve this assignment: 1. There are three countries - Argentina, Britain and Canada. 2. Each country produces and consumes two kinds of goods- crude oil and beef. 3. All countries make their goods from a single type of input - labor - and each country has 60 hours of labor available to produce crude oil and beef. 4. Each country demands 2 barrels of crude oil. This assumption simply means that a country must have exactly 2 barrels of crude oil - it may produce them domestically, it may import them from abroad, or it makes some domestically and imports the rest. 5. Countries produce goods using the technology described in the table below: Technology Hours of labor needed to produce one unit of good Argentina Britain Canada barrel of crude oil pound of beef 20 30 12 2 10 Using the above assumptions, answer the following questions: 1. Calculate the quantities of crude oil and beef produced in each country in autarky (when they do not trade and each country produces its own crude oil and beef) Total Quantities produced Argentina Britain Canada Autarky barrel of crude oil (No trade) pound of beef 2. Order the countries according to their absolute advantage in production of crude oil

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 8SCQ: State whether each of the following events Involves a financial flow to the U.S. economy or away...

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