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Unformatted text preview: million cars. 4. a. Pat's is 2.5 litres of root beer; Kris' is 10/3 litres of root beer. Pat. Pat. b. Pat. c. 10/3 of a litre of root beer. 2.5 litres of root beer. 5. a. 15 tonnes of wheat. 1/15 of a car. b. Straight line with intercepts 20 (cars) and 300 (wheat). 150 million tonnes. c. 200 million tonnes of wheat + 10 million cars. Canada should accept. 6. Yes. Comparative advantage. 2 7. a. England. England. b. Sweaters. c. Yes. Yes. Comparative advantage. 8. a. 1 red sweater. 2 red sweaters. b. Montreal absolute advantage in both. Toronto comparative advantage in red; Montreal comparative advantage in blue. c. Montreal blue; Toronto red. d. Between 1 and 2 red sweaters. 9. a. All goods can be produced with fewer worker hours. b. Comparative advantage (lower marginal opportunity cost). c. Yes. 10. a. True. b. False. c. False....
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This note was uploaded on 06/27/2010 for the course ECONOMCIS Econ103 taught by Professor D.allen during the Fall '08 term at Simon Fraser.
- Fall '08