Question: Answer the question below.. Question 1 The following table shows the production of cars and radios in Countries A and B. Countries Cars (units) Radios

 Answer the question below.. Question 1 The following table shows the

Answer the question below..

production of cars and radios in Countries A and B. Countries Cars(units) Radios (units) A 80 100 B 60 60 a) Which countryhas an absolute advantage in the production of cars and radios? b)

Question 1 The following table shows the production of cars and radios in Countries A and B. Countries Cars (units) Radios (units) A 80 100 B 60 60 a) Which country has an absolute advantage in the production of cars and radios? b) Which country has the comparative advantage in the production of car and radios? c) According to the principle of comparative advantage, which country should specialize in producing car and radio? d) Construct the table after specialization. e) With the assumption of complete specialization after trade, what is the term of trade for both countries?Question 2 The following table shows the output of coca and rubber that is produced by two countries. Countries Cocoa (ton) Rubber (ton) Indonesia 550 2,000 Vietnam 1,100 750 Suppose that resource are divided equally between the two productions. a) Which country has an absolute advantage in production of cocoa? b) Calculate the opportunity cost of producing one ton of cocoa and ton of rubber in each country? c) Which country has the comparative advantage of producing cocoa and rubber? d) Construct the output table after specialization.Question 3 Based on Table 3, answer the following questions:- Table 3: The Production of Watches and Shoes Country Watches Shoes China 5,000 500 Uganda 1,000 2,200 a. Which country has an absolute advantage in both line of production? Why ? I b. Calculate the opportunity cost to produce watches and shoes for both countries. C. Based on the comparative advantage theory, state the line of specialization for each country and construct the table after specialization. d. Suggest a term of trade that will benefit both countries. e. List THREE (3) benefits for implementation international trade

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!