American and japanese workers can each produce 4 cars a year. – Essaylink

Get your Assignment in a Minimum of 3 hours

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

Free Inquiry Order A Paper Now Cost Estimate
American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has a 100 million workers.

a. For this situation construct a table analogous to the table in figure 1.

b. Graph the production possibilities frontiers for the American and Japanese economies.

c. For the United States, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of grain? Put this information in a table analogous to Table 1.

d. Which country has an absolute advantage in producing cars? producing grains?

e. Which country has a comparative advantage in producing cars? producing grains?

f. Without trade, half of each country’s workers produce cars and half produce grain. What quantities of cars and grain does each country produce?

g. Starting from a position without trade, give an example in which trade makes each country better off.

"Is this question part of your assignment? We Can Help!"

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Get Started