Homework Answers
Country X:
Opportunity cost of producing 1 radio = 20/10 = 2 watches
Country Y:
Opportunity cost of producing 1 ratio = 10/20 = 0.5 watches
Option c is correct
Exchanging 1 watch for 1 radio would bring gains to both countries (this price ratio lies between the opportunity costs of both countries)
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Country X Country Y WATCHES WATCHES 10 10 RADIOS 20 RADIOS 3. Using equal amounts of...
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Assume that in country A, the unit labor requirement for producing good X is 100 hours, and the unit labor requirement for good Y is 20 hours. Meanwhile in country B, the unit labor requirement for producing good X is 80 hours and the unit labor requirement for good Y is 40 hours. Answer the following: Explain which country has an absolute advantage in each good. Explain which country has a comparative advantage in each good. Under the Theory of...
Assume that in country A, the unit labor requirement for producing good X is 100 hours,...
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Table 3-10 Assume that Japan and Korea can switch between producing cars and producing air rate....
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L4 X-150 Y 150 Y-300 150 ol Mexico Canada ov 1. The production possibility frontiers of two countries are represented on the graph:s above as straight lines. Let Good X be units of oil (100,000's of barrels) and Good Y be units of automobiles (100,000's of cars). Mexico is currently producing and consuming the goods combination represented by Point A. Canada is currently producing and consuming the goods combination represented by Point B a. Does either country have an absolute...
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