6.Table 3-11Assume that Jamaica and Norway can switch between producing coolers and producing radios at a constant rate.Output Produced in One DayRadios63JamaicaNorwayCoolers1224Refer to Table 3-11. Jamaica's opportunity cost of one cooler isa. 0.5 radios, and Norway's opportunity cost of one cooler is 0.125 radios.b. 2 radios, and Norway's opportunity cost of one cooler is 0.125 radios.c. 2 radios, and Norway's opportunity cost of one cooler is 8 radios.d. 0.5 radios, and Norway's opportunity cost of one cooler is 8 radios.

Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or…

Answered: Table 3-11 Assume that Jamaica and…

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 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...

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Similar questions

In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
Does intra-industry trade contradict the theory of comparative advantage?
France and Tunisia both have Mediterranean climates that are excellent for producing/harvesting green beans and tomatoes. In France it takes two hours for each worker to harvest green beans and two hours to harvest a tomato. Tunisian workers need only one hour to harvest the tomatoes but four hours to harvest green beans. Assume there are only two workers, one in each country, and each works 40 hours a week. Draw a production possibilities frontier for each country. Hint: Remember the production possibility frontier is the maximum that all workers can produce at a unit of time which, in this problem, is a week. Identify which country has the absolute advantage in green beans and which country has the absolute advantage in tomatoes. Identity which country has the comparative advantage. How much would France have to give up In terms of tomatoes to gain from trade? How much would it have to give up in terms of green beans?

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