How would your analysis change ifyou .assumed, more realistically, that each country had 10 million workers? Suppose a worker in the United Stites can produce 4 cars or 20 computers per month whereas a worker in Russia can produce 1 car or 5 computers per month. Again, for simplicity, assume each country has only one worker.

a. Fill out the following table: United States Russia

b. c.

d. e.

f. Which country has the absolute advantage in the production of cars? computers? Which country has the comparative advantage in the production of cars? computers? Are there any gains to be made from trade? Why? Does your answer in part d above help you pinpoint a source for gains from trade? What might make two countries have different opportunity costs of production? (Use your imagination. This was not directly discussed in Chapter 3.)