question archive Production (output) per unit of labor Canada France Steel 500 1,200 Aluminum 1,500 800 (1) Does either country have an absolute advantage in the production of steel or aluminum? Explain concisely
Production (output) per unit of labor Canada France Steel 500 1,200 Aluminum 1,500 800 (1) Does either country have an absolute advantage in the production of steel or aluminum? Explain concisely
Subject:EconomicsPrice: Bought3
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Production (output) per unit of labor |
||
|
|
Canada |
France |
|
Steel |
500 |
1,200 |
|
Aluminum |
1,500 |
800 |
(1) Does either country have an absolute advantage in the production of steel or aluminum? Explain concisely.
(2) Plot the corresponding PPFs of each country (with steel on the x-axis) and calculate the opportunity cost of steel in terms of aluminum. What is the opportunity cost of steel in each country?
(3) Now, plot the corresponding PPFs of each country (with aluminum on the x-axis) and calculate the opportunity cost of aluminum in terms of steel. What is the opportunity cost of aluminum in each country?
(4) Based on comparative advantage, what should be the pattern of trade between Canada and France?
