Appendix A International Trade Homework Questions
1. Complete this chart and related questions.
|
Hours to Produce |
Hours |
Maximum Computers |
Maximum TV's |
||
| Computers | TV's | ||||
| U.S. | 4 | 3 | 1,200 | ||
| JAPAN | 3 | 2 | 600 | ||
A. Which country has an absolute advantage in TV's? ___________
in computers ___________
B. Draw a linear production possibility frontier for each country putting TV's on the x-axis.
C. Calculate the opportunity costs for each product and each country.
D. Which country has a comparative advantage in which products? Why?
E. Which country should specialize in which product? Why?
| Answers to Appendix A Homework Questions | Table of Contents |
| Appendix A Class Discussion Questions | Economics Free Stuff |