Suppose there are 1 millions of workers in Country X. Each workers can either produce 2...

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Suppose there are 1 millions of workers in Country X. Each workers can either produce 2 units of game console or 30 units of wheat in a year. What is the opportunity cost of producing a unit of game console in Country X? (1 mark) b. Suppose, for Country Y, the opportunity cost of producing a unit of game console is 25 units of wheat. i. a. C. Which country, X or Y, has a comparative advantage in producing game console? Explain. ii. Suppose in the international trade market, one unit of game console can be exchanged for 22 units of wheat. Explain whether Country X should buy or sell game console in the international market. What will be her gain from trade per unit of game console bought or sold? What will be the corresponding gain from trade for Country Y? (4 marks) Suppose recently, the Education Department of Country X has banned all her residence from playing video games with game consoles. One Key-Opinion Leader (KOL) claims that "since we don't need game consoles anymore, we should stop producing game console at all. We should put the resources in producing wheat instead". Given your above answers, explain whether you agree the claim of the KOL. (3 marks) Suppose there are 1 millions of workers in Country X. Each workers can either produce 2 units of game console or 30 units of wheat in a year. What is the opportunity cost of producing a unit of game console in Country X? (1 mark) b. Suppose, for Country Y, the opportunity cost of producing a unit of game console is 25 units of wheat. i. a. C. Which country, X or Y, has a comparative advantage in producing game console? Explain. ii. Suppose in the international trade market, one unit of game console can be exchanged for 22 units of wheat. Explain whether Country X should buy or sell game console in the international market. What will be her gain from trade per unit of game console bought or sold? What will be the corresponding gain from trade for Country Y? (4 marks) Suppose recently, the Education Department of Country X has banned all her residence from playing video games with game consoles. One Key-Opinion Leader (KOL) claims that "since we don't need game consoles anymore, we should stop producing game console at all. We should put the resources in producing wheat instead". Given your above answers, explain whether you agree the claim of the KOL. (3 marks)

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a The opportunity cost of producing a unit of game console in country X is 15 units of wheat Since o... View the full answer