The countries USA and China produce computers and rice using only labor as an input. Available Labor for USA and China is 6000 and 2000 respectively. Unit of labor per computer in USA is 6 units and in China are 5 units. USA needs 2 units of labor to produce rice and China needs 1 unit of labor. a) Draw the PPC by using relevant information. b) Which country has the comparative advantage in producing rice?
The countries USA and China produce computers and rice using only labor as an input. Available Labor for USA and China is 6000 and 2000 respectively. Unit of labor per computer in USA is 6 units and in China are 5 units. USA needs 2 units of labor to produce rice and China needs 1 unit of labor. a) Draw the PPC by using relevant information. b) Which country has the comparative advantage in producing rice?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter18: Trading With Other Nations
Section: Chapter Questions
Problem 10AA
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The countries USA and China produce computers and rice using only labor as an input. Available Labor for USA and China is 6000 and 2000 respectively. Unit of labor per computer in USA is 6 units and in China are 5 units. USA needs 2 units of labor to produce rice and China needs 1 unit of labor.
a) Draw the PPC by using relevant information.
b) Which country has the
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