Question

Use the information in the following table on labor productivities in France and Germany to answer questions a through f France Output per hour worked France 50 Germany kilograms 0.8 kilograms Cars a. The absolute advantage in cheese is held by France and the absolute advantage in cars is held by Germany b. The relative price of aheese in France is 0.1 cars (round to one decimai place) and the relative price of aheese in Germany is 0.4 cas 40 round to one decimalpace) c. The opportunity cost of cheese in France is 0.1 cars (round to one decimal piace) and the opportunity cost of cheese in Germany is 0.4 30 cars (round to one decimal place). d. The comparative advantage in cheese is held by France and the comparative advantage in cars is held by Germany e. The trade price of cheese has an upper bound of 0.4 cars (round to one decimal place) and a lower bound of 0.1 cars (round to 20 one decimal piace) f. Assume France has 10 hours it can allocate toward the production of cheese and cars. Carefully follow the steps below to draw the required objects on the fgure to the right 10 1.) Using the line drawing tool, draw France's PPC given the dats above. (HINT: start your PPC on the vertical axis at 40.) Properly label your 2.) Using the point drawing tool,e France produces according to its comparative advantage and identify its production point. Label this point A 10 3.) Using the line drawing tool, given the trade price of cars is five kilograms of cheese per car, draw the trade line showing how France can in from trade. Properly label your line Cars Delete Clear none

The drawing only

Answer 1