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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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. Assume that in both the US and Japan tastes are such that no matter what the prices or incomes, people want to consume equal quantities of TVs and computers (i.e. computers consumed must equal TVs consumed in each country).
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern