🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
84
views

Number of Labor Hours needed to produce one unit of:

  Chocolates  Shirts
Switzerland  10 hours  15 hours
U.S. 12 hours   24 hours



1. Who has absolute advantange in chocolates? Who has absolute advantage in shirts?

2. Who has comparative advantage in chocolates? Who has comparative advantage in shirts?

3. If these nations trade freely, what does the U.S. import from Switzerland?

Watch
1
answer
0
watching
84
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Anne Gillian Duero
Anne Gillian DueroLv10
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

In one day Adam can produce either 5 shirts or 10 ties, and in one day Bob can produce either 6 shirts or 15 ties. Of course, Adam or Bob could split their time between producing shirts and ties and produce some combination of the two goods. Suppose Adam and Bob each specialize in the production of the good for which he has a comparative advantage. At which of the following prices will both Adam and Bob gain from trade?

a. 6 ties for 2 shirts

b. 4 ties for 1 shirt

c. 7 ties for 4 shirts

d. None of these choices

 

Wine Cheese

France

Wine - 2 hours/barrel
Cheese - 4 hours/pound

Italy

Wine - 6 hours/barrel

Chese - 10 hours/pound

1. The above table shows you the productivities of wine and cheese for French and Italian workers. Given these information, answer the following questions: (a) Which country has the comparative advantage in the production of wine? Which country has the comparative advantage in the production of cheese? (b) Suppose France and Italy are open to trade according to comparative advantage. When one unit of wine is traded, what is the range of mutually agreeable/beneficial trade in terms of cheese? Show all work.

Watch the video to have a better understanding of Absolute Advantage.

2. Complete the assignment attached.

https://www.youtube.com/watch?v=Vvfzaq72wd0

We use the concepts of absolute and comparative advantage to explain why countries import some products and export others. We can also use them to explain how work can be divided between two people. Two consultants—John and Jennifer—have a client who needs a company report written and a PowerPoint presentation prepared within the next two weeks. Both John and Jennifer have experience writing reports and preparing presentations, but neither has the time to do both jobs. From past experience, they know how much time each of them needs to complete each type of project:

Consultant

Write a Report

Prepare a Presentation

John

80 hours

40 hours

Jennifer

150 hours

60 hours

Using the information contained in the grid above, answer each of the following questions:

Does either John or Jennifer have an absolute advantage in (1) writing reports and/or (2) preparing presentations?

Does either have a comparative advantage? [Note: To handle this question, first determine how many total hours would it take to serve the client if John writes the report and Jennifer prepares the presentation. Then determine how many total hours would be required if, instead, Jennifer writes the report and John prepares the presentation.]

Based on your analysis, how would you recommend that John and Jennifer divide the work?

Given your answer to the previous question, would you say that John has a comparative advantage in writing reports, in making presentations, or in both? What should John specialize in?

Does Jennifer have a comparative advantage in either task? What should she specialize in?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in