QUESTION 3 (Figure: The Production Possibilities for Taiwan and Japan) Use Figure: The Production Possibilities for Taiwan and Japan. Taiwan has a comparative advantage in producing while Japan has a comparative advantage in producing Quantity of microchips 1,600 1.400 1,200 L 800 200 Talwan 100 1,200 Quantity of rain boots Quantity of microchips rain boots; microchips Ob. both microchips and rain boots; neither good Oc. microchips; rain boots O d. neither good; both microchips and rain boots LAN 1,000 A 400 400 Japan NOO 100 Quantity of rain boots

Figure 2-10 Honey (gallons) 480 0 Tahiti 400 Milk (gallons) Honey (gallons) 540 O 1.125 gallons of honey 0 O 1.5 gallons of honey O 0.8 gallons of honey O 2/3 of a gallon of honey Bora Bora 360 Figure 2-10 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. Milk (gallons) Refer to Figure 2-10. What is the opportunity cost of producing one gallon of milk in Bora Bora?

Q2

We can conclude from the table that Spain has a comparative advantage in the production of tables. [True or False] Explain your answer.

10. Problems and Applications Q10 Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. Price of Steel (Dollars perton) 100 90 2 2 2 2 2 2 - 60 40 30 20 10 Demand 0 100 200 300 400 500 600 700 Quantity of Steel (Tons) Supply 800 900 1000 Triangle Polygon

(Use Table 1) Harold has a comparative advantage in and Wilhelmina has a comparative advantage in Table 1 * Harold Wilhelmina Coconuts Fish Coconuts Fish Output per day 2 1 1 1) fish, fish 2) coconuts, fish 3) coconuts, coconuts 6,

Brazil is able to produce 10 cars and 5 computers in one hour while India is able to produce 1 car and 4 computers in one hour. Brazil has a comparative advantage in producing and India has a comparative advantage in producing a. cars; cars b. computers; cars C. cars; computers d. computers; computers

Please help show the work

8. Problems and Applications Q8 Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. There are 1 million workers in each country. Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China. Quantity of Computers (Millions) 30 27 24 21 is 18 15 12 9 6 3 0 0 10 20 30 50 60 70 Quantity of Shirts (Millions) 40 90 100 If these countries were open to trade, trade. U.S. PPF China PPF + Suppose that without trade the workers in each country spend half their time producing each good. U.S. without Trade Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China. True or False: There are no longer gains from trade. China…

part g please