Points on Production Possibilities Frontier Canada China Wheat Computers Wheat Computers A 150 0 90 0 B 100 25 60 60 C 50 50 30 120 D 0 75 0 180 Draw the production possibilities graph for Canada and China and label all of the points on the graph. For which good does Canada have a comparative advantage? For which good does China have a comparative advantage?
Points on Production Possibilities Frontier Canada China Wheat Computers Wheat Computers A 150 0 90 0 B 100 25 60 60 C 50 50 30 120 D 0 75 0 180 Draw the production possibilities graph for Canada and China and label all of the points on the graph. For which good does Canada have a comparative advantage? For which good does China have a comparative advantage?
Chapter28: International Trade And Finance
Section: Chapter Questions
Problem 1SQP
Related questions
Question
Points on Production Possibilities Frontier |
Canada |
China |
|||
Wheat |
Computers |
Wheat |
Computers |
||
A |
150 |
0 |
90 |
0 |
|
B |
100 |
25 |
60 |
60 |
|
C |
50 |
50 |
30 |
120 |
|
D |
0 |
75 |
|
0 |
180 |
Draw the production possibilities graph for Canada and China and label all of the points on the graph.
- For which good does Canada have a
comparative advantage ? - For which good does China have a comparative advantage?
- If Canada and China decide to specialize and trade, how many more computers and bushels of wheat would be available for consumption by both countries? Show the increase on your graphs.
- Canada and China decide to impose trade restrictions in the form of a tariff on the computers and wheat. What are the costs or benefits to the consumer, producer and government for each country?
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