Question

Use the information in the following table on labor productivities in France and Germany to answer questions a through Output par hour worked France Germa 4 kilograms kilograms a. The absolute advantage in cheese is held by Germany and the absolute advantege in cars is held by Germany b. The relative price of cheese in France is 025 cars (round to two decimal places) and the relative price of cheese in Germany is 1 car c. The opportunity cost of cheese in France is 025 cars(round to two decimal places) and the opportunity cost of cheese in Germany is 1 ca d. The comparaive 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 or car and 3 lower bound of 0.25 cars (round to two decimai piaces). f.Assume France has 10 hours it can allocate toward the production of cheese and cars. Carafully follow tho stops balow to draw the roquired objects on the figure to the right 1.) Uaing the ina drawing tool, draw France's PPC given the data above. Proparly label your lina. 2.) Using the point drawing tool, assume France produces according to its comparative advantage and identify its production point. Label this point A 3.) Using the line drawing tool, given the the trade price of cars is two kilograms of cheese per car, draw the trade line showing how France can gain from trade. Properly label your line. Carefully follow the instructions above, and only draw the required objects. 10 20 30 40 50 Cheese Delete Clear ?

The drawing only

Answer 1