A German worker takes 400 hours to produce a carand 2 hours to produce a case of wine. A Frenchworker takes 600 hours to produce a car and X hoursto produce a case of wine.a. For what values of X will gains from trade bepossible? Explain.b. For what values of X will Germany export carsand import wine? Explain.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains Rrom Trade
Section: Chapter Questions
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A German worker takes 400 hours to produce a car
and 2 hours to produce a case of wine. A French
worker takes 600 hours to produce a car and X hours
to produce a case of wine.
a. For what values of X will gains from trade be
possible? Explain.
b. For what values of X will Germany export cars
and import wine? Explain.

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