60PART ONEINTRODUCTIONthis information in a table analogous to Table 3-3.d.Which country has an absolute advantage inproducing cars? In producing grain?e.Which country has a comparative advantage inproducing cars? In producing grain?f.Without trade, half of each country’s workersproduce cars and half produce grain. Whatquantities of cars and grain does each countryproduce?g.Starting from a position without trade, givean example in which trade makes each countrybetter off.4. Pat and Kris are roommates. They spend most of theirtime studying (of course), but they leave some time fortheir favorite activities: making pizza and brewing rootbeer. Pat takes 4 hours to brew a gallon of root beer and2 hours to make a pizza. Kris takes 6 hours to brew agallon of root beer and 4 hours to make a pizza.a.What is each roommate’s opportunity cost ofmaking a pizza? Who has the absolute advantage inmaking pizza? Who has the comparative advantagein making pizza?
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.