0115142.hw4ans - Economics 0115 Homework#4 Answers 1 Given the data on the production possibility frontiers for the US and Japan in Table 1-1 do the

0115142.hw4ans - Economics 0115 Homework#4 Answers 1 Given...

This preview shows page 1 - 7 out of 19 pages.

Economics 0115 Homework #4: Answers 1. Given the data on the production possibility frontiers for the US and Japan in Table 1-1, do the following:
Image of page 1
a. Construct a table showing the opportunity costs for producing food and autos in each country. Which country has the comparative advantage in producing food? In producing autos? Explain.
Image of page 2
b. Draw each country's production possibility frontier (PPF) on a separate graph. Using autos on the vertical axis, calculate the slopes of these two PPFs.
Image of page 3
2. Assume that the terms of trade (TOT) are set at 1F = 1A. a. Given the TOT, indicate what will happen to the production of A and F in each country.
Image of page 4
b. Given the terms of trade, draw the consumption possibility frontiers (CPF) for the US and Japan.
Image of page 5
Image of page 6
Image of page 7

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture