ECON 1BB3 Chapter Notes - Chapter 3: Opportunity Cost, System On A Chip, Comparative Advantage
20 Sep 2012
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ECON 1BB3 Full Course Notes
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Chapter 3 problems and applications answers: a) Japan: the opportunity cost of reading 100 pages of sociology is 40 pages of economics (to read an extra 100 pages of soc, maria must give up reading 40 pages of econ). Workers needed to make one: ton of grain car. Amount produced in one year: ton of grain. Opportunity cost of one car is 2. 5 tons of grain. Opportunity cost of one ton of grain is 0. 4 cars. Japan - opportunity cost of one car is 1. 25 tons of grain. Opportunity cost of one ton of grain is 0. 8 cars: neither country has an absolute advantage in producing cars (both can produce. The us has an absolute advantage in producing grain: japan has the comparative advantage in car production while the us has the comparative advantage in producing grain, production without trade is:
