Solve the problem below (comparative advantage). The goal is to work through the math. Explain in detail. The scenario-Exchanging Wine for Fabric (two state economy w/ no transaction costs or currency exchange issues) 1 Bolt of fabric = 100 hours of French labor 90 hours of Spanish labor 1 pipe of wine = 120 hours of French labor 60 hours of Spanish labor France Spain Fabric 100 90 Wine 120 60 Opportunity Costs France-labor to produce 1 bolt of fabric = labor to produce .8 pipes of wine. Spain-Labor to produce 1 bolt of fabric = labor to produce 1.50 pipes of wine. Spain has an absolute advantage in the production of both commodities-should it trade with France?

* Course Placement All E R Country 2Learn Shoes Glasses Mexico 10 12 The table below describes production possibilities for Mexico and Nigeria. Each number in the table shows the number of workers needed to produce one unit of the product. Nigeria 18 5 1. What is the opportunity cost of producing Shoes in Mexico? Glasses 2. What is the opportunity cost of producing Glasses in Mexico? Shoes 8 In-Text Citations 3. What is the opportunity cost of producing Shoes in Nigeria? Glasses 4. What is the opportunity cost of producing Glasses in Nigeria? Shoes Study.com GGoogle 5. Which country has an absolute advantage in producing Shoes? 6. Which country has an absolute advantage in producing Glasses? Q Search 193 F7 PRE M W ParentVUE prt sc B SAM SAM y! Informal spee home P 国

5. Comparative and absolute advantage Carlos and Deborah are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Carlos Deborah Corn (Bushels per acre) 20 28 Rye (Bushels per acre) 4 7 On the following graph, use the blue line (circle symbol) to plot Carlos's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Deborah's PPF.

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Even if neither country had a comparative advantage, why might these countries still experience gains from trade? simple plus example please

1. a. What is meant by the “gains from trade”?b. Illustrate and label these gains on a figure

Specialization will increase output when it is based on: absolute advantage. O comparative advantage. who can produce at the least comparative cost. O who can produce the fastest.

Table 3-5 England Spain Labour hours needed to make one unit: Cheese 1 Select one: O a. consumers who like bread O b. owners of cheese-producing companies Bread 2 8 O c. consumers who like cheese O d. owners of milk-producing companies Amount produced in 40 hours: Cheese Refer to Table 3-5. If England and Spain specialize and trade according to their respective comparative advantage, who gains in the short run in England? 40 20 Bread 20 5

I'm confused on how to calculate the gains from trade. I don't know what to do.

Comparative Advantage: Suppose that the United States and Switzerland produce bicycles and chocolate bars: Bicycles per worker/year Chocolate Bars per worker/year 10,000 20,000 Switzerland 1 United States 5 a. The United States has an absolute advantage in both bicycles and chocolate bars, but which country has a comparative advantage producing bicycles? Chocolate bars? b. Assume there are 10,000 workers. Draw the production possibilities frontier for the United States prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on the U.S. production possibilities frontier (put bicycles on the x-axis and millions of chocolate bars on the y-axis). c. Assume there are 10,000 workers. Draw the production possibilities frontier for Switzerland prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on Switzerland's…