Homework Answers
| Australia | Japan | |
| Passenger vehicles | 2 | 6 |
| LNG | 80 | 120 |
i. Japan has a comparative advantage in producing passenger vehicles. It is 3 times better than Australia in passenger vehicles (6/2=3) and 1.5 times better in LNG (120/80=1.5).
ii. Australia can either produce 40 billion tonnes of LNG or 1 passenger vehicle (dividing both production by 2). Thus the minimum number of cars it will accept is 1. Japan can either produce 40 billion tonnes of LNG or 2 cars (dividing both production by 3). Thus the maximum number of cars it will pay is 2.
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A. Consider Australia and Japan which can both produce Liquified Natural Gas (LNG) or passenger vehicles....
A. Consider Australia and Japan which can both produce Liquified Natural Gas (LNG) or passenger vehicles....
A. Consider Australia and Japan which can both produce Liquified Natural Gas (LNG) or passenger vehicles. In a year, Australia can produce 80 billion tonnes of LNG or it can produce 2.0 million passenger vehicles. In a year, Japan can produce 120 billion tonnes of LNG or it can produce 6.0 million passenger vehicles. i. Explain which country has the comparative advantage in passenger vehicles. ii. If Australia were to trade its 40 billion tonnes of LNG for passenger cars...
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4. Japan has limited and declining domestic supplies of liquid natural gas (LNG). They are the world's largest importer of LNG. Japan imports from a variety of countries, including Malaysia, Australia, the Middle East, and Russia, indicating they are able to choose from a number of suppliers. Consider Japan a firm that is determining how much LNG to buy. They operate as a monopsony - 1 buyer in a market with many suppliers of LNG. a. On the graph below,...
Table 3-10 Assume that Japan and Korea can switch between producing cars and producing air rate. Quantity Produced in 2400 Hours Hours Needed to Make 1 Car Airplane 30 150 50 150 Airplane 16 Japan Korea Draw a production possibilities frontier for both Korea and Japan assuming 2400 production hours available. What is the opportunity cost of each country to produce each cost? What country has a comparative advantage in the production of cars? What country has a comparative advantage...
An American worker can produce either 5 cars or 8 tons of grain a year. A lapanese worker can produce either 4 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers Complete the foflowing table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car 1 Ton of Grain United StatesY Japan...
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