Asst10f09 - it has the comparative advantage in the product...

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AGEC 217 Assignment 10 Due: Friday, 11/13/09 Name __________________________ Seat No. _____________ 1. For each kind of unemployment tell what can be done to reduce it and how effective the treatments will likely be. (Half the points are your organization.)
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2. For each kind of inflation, tell what can be done to reduce it and how effective the treatments will likely be. (Half the points are your organization.)
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3. Given the following information, answer the questions below: Having an absolute advantage means a country can produce more from one resource than the other country can. If one country is twice as good at producing one product and three times as good as producing another, it has a comparative advantage in the product it is three times as good at. Similarly, if one country is half as good at producing one product and two-thirds as good at producing another,
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Unformatted text preview: it has the comparative advantage in the product it is two-thirds as good at. Given the following production from one unit of resources Product Mexico Guatemala Bananas 4 7 Coffee 5 6 a. Which country has the absolute advantage in banana production? __________ b. Show your calculations and/or comparisons you use to decide. c. Which country has the absolute advantage in coffee production? __________ d. Show your calculations and/or comparisons you use to decide. e. Which country has the comparative advantage in banana production? ________ f. Show your calculations and/or comparisons you use to decide. g. Which country has the comparative advantage in coffee production? _________ h. Show your calculations and/or comparisons you use to decide....
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This note was uploaded on 02/19/2011 for the course AGEC 217 taught by Professor Deboer during the Fall '08 term at Purdue University.

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Asst10f09 - it has the comparative advantage in the product...

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