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solutions to PS1 comparative advantage

# solutions to PS1 comparative advantage - (exporter seller b...

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Comparative Advantage Problem Set #1: Solutions Please answer the four questions based on the data provided in the following table. Computers Calculators Output / worker in US 10 2000 Output / worker in UK 12 3000 1. Estimate how many computers does it take to produce one CALCULATOR in: a. US: 10 / 2000 = 0.005 computers : (importer / buyer) b. UK: 12 / 3000 = 0.004 computers : (exporter / seller) 2. Estimate how many calculators does it take to produce one COMPUTER in: a. US: 2000 / 10 = 200 calculators:
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Unformatted text preview: (exporter / seller) b. UK: 3000 / 12 = 250 calculators: (importer / buyer) 3. Which country (US or UK) should be a net exporter of COMPUTERS? US 4. Indicate if the following terms of trade are acceptable (A) or unacceptable (U) to US and UK. US (indicate A or U) UK (indicate A or U) 1 computer = 180 calculators U A 1 calculator = 0.0038 computers A U 1 computer = 260 calculators A U 1 calculator = 0.0055 computers U A...
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