1. One German worker can produce either 5 cars or 10 tons of grain a year. OneJapanese worker can produce either 4 cars or 5 tons of grain a year. To keep thingssimple, assume that each country has 100 million workers.a) Complete the following table with the number of workers needed to makeone car or one ton of grain in Germany and JapanWorkers Needed to make1 CarGermanyJapan1/51/41/101/51 Ton of Grainb) Graph the production possibilities frontier (PPF) for German economy aswell as the PPF for Japanese economy in the same graph. Carefully label andidentify the endpoint in your graphs.c) Given all the information above, which country has an absolute advantage inproducing cars? Which country has an absolute advantage in producing grain.Why?

Given Production per worker in a year Car Grain Germany 5 10 tons Japan 4 5 tons The…

1. One German worker can produce either 5 cars or 10 tons of grain a year. One Japanese worker can produce either 4 cars or 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. a) Complete the following table with the number of workers needed to make one car or one ton of grain in Germany and Japan Germany Japan 1/5 1/4 Workers Needed to make 1 Car 1/10 1/5 1 Ton of Grain b) Graph the production possibilities frontier (PPF) for German economy as well as the PPF for Japanese economy in the same graph. Carefully label and identify the endpoint in your graphs. c) Given all the information above, which country has an absolute advantage in producing cars? Which country has an absolute advantage in producing grain. Why?

1. One German worker can produce either 5 cars or 10 tons of grain a year. One Japanese worker can produce either 4 cars or 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. a) Complete the following table with the number of workers needed to make one car or one ton of grain in Germany and Japan Germany Japan 1/5 1/4 Workers Needed to make 1 Car 1/10 1/5 1 Ton of Grain b) Graph the production possibilities frontier (PPF) for German economy as well as the PPF for Japanese economy in the same graph. Carefully label and identify the endpoint in your graphs. c) Given all the information above, which country has an absolute advantage in producing cars? Which country has an absolute advantage in producing grain. Why?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 35P: If trade increases world GDP by 1 per year, what is the global impact of this increase over 10...

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If the removal of trade banters is so beneficial to international economic growth, why would a nation continue to restrict trade on some imported or exported products?
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1. An American worker can produce either 4 cars or 8 tons of grain a year. A Japanese worker can produce either 4 cars or 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. How Many Workers Needed Workers Needed to Make 1 Car 1 Ton of Grain United States Japan 2.Use the blue line (circle symbol) to graph the production possibilities frontier for the American economy. Then use the green line (triangle symbol) to graph the production possibilities frontier for the Japanese economy. *The Graph includes on the left Cars(Millions) from 0-500 in increments of 50s the bottom of the garph is marked as Grains (Millions Of Tons) from 0-1000 in increments of 100s. 3. Complete the following table by determining the opportunity cost of a car and of…
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