Assignment 3 - ECN 306 Spring 2010 Assignment 2 1 Given the...

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ECN 306 Spring 2010 Assignment 2 1. Given the following information about production in Japan and the US, answer the questions below: Country : US Japan Hours to make a TVs 1 4 Hours to make a computer 2 1 a. Japan has an absolute advantage in _________________________ b. The US has an absolute advantage in ________________________ c. Japan has a comparative advantage in _________________________ d. The US has a comparative advantage in ________________________ e. Before trade the price ratio in Japan is ________________________ f. Before trade, the price ratio in the US is _______________________ g. If trade were to take place between Japan and the US, the price of computers/price of TVs would have to be ______________ < (P comp/P TV) < __________________. 2. Assume that the United States has 100 workers and Japan has 50 and technology is as in problem 1. a. Draw the production possibilities curves for Japan and the US. b.
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This note was uploaded on 05/05/2010 for the course ECONOMICS ecn 306 taught by Professor Brada during the Spring '10 term at ASU.

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Assignment 3 - ECN 306 Spring 2010 Assignment 2 1 Given the...

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