Question: Chapter 2 Opportunity Cost & Specialization The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce

Chapter 2 Opportunity Cost & Specialization The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,000 computers or 2,000 units of food a day, and Philippines can make 200 computers or 1,200 units of food in a day. Amount Produced of Each Good per Day per Country Computers Food Australia 1,000 2,000 Philippines 200 1,200 1. Illustrate the production possibilities (PPC) for both countries 2. Which country has an absolute advantage in the production of both goods? Why? 3. Which country has a comparative advantage in computers production? Explain. 4. Which country should specialize in computers production? Explain. 5. Which country has a comparative advantage in food production? Explain. 6. Which country should specialize in food production? Explain

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!

Answer all 6 questions The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,000 computers or...

Answer all 6 questions. Make graph on computer do not draw. The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers....

Answer all 6 questions The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,000 computers or...

Answer all 6 questions. Make graph on computer do not draw. The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers....

Answer all 6 questions The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,000 computers or...

Give the answer of all the following questions. The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can...

The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,500 computers or 3,000 units of food a...

For the project, Students should read Chapter 19 and then write a short Chapter Summary, T he world is a giant shopping mall, and Americans are big spenders. For example, the U.S. population is less...

How is EDI more than technology? What unique control problems may it pose?

Want to invest in a loader for $2,400,000nand use it as a contract, with an expected income ofn$920,000nper year andn$420,000nper year from the cost of using the loader if the salvage value of the...

simplify ( 3 1 2 x ^ 7 y ^ 4 ) / ( 3 9 x ^ 3 y ^ 2 )

please make answer neat & clearly typed answer is better Bob's Builders Inc. enters into a 10-year, 6%, $200,000 mortgage to finance the construction of a condo complex on August 31, 2020. Monthly...

1. What will happen in the future

3. Avoid making mistakes when reaching our goals

4. Achieve our positive goals (1 and 3 are motivated by avoiding the negative, while 2 and 4 are motivated by the positive). b. Initiative: When I communicate with others, I think it is very...