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Unformatted text preview: the x-intercepts for both PPFs the y-intercepts for both PPFs labels indicating which PPF is which 2) Does one economy have the absolute advantage? If so which one? 3) Fill out this table (you dont have to do your work in the table): Dopey Sneezy Opp cost of 1 iPod Opp cost of 1 hard drive 4) Which economy has the comparative advantage in making iPods? Which has the comparative advantage in making hard drives? 5) If there was trade, and we assume that one economy only produces iPods, while the other economy only produces hard drives, which economy will produce iPods, and which will only produce hard drives? 6) Now assume that there is trade, and the economy that specializes in iPods exports 32 iPods, and the economy that specializes in hard drives exports 26 hard drives. Fill out this table: No Trade Yes Trade Produce Consume Produce Export Import Consume Gains from Trade Dopey iPods Dopey hard drives Sneezy iPods Sneezy hard drives...
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This note was uploaded on 09/08/2011 for the course ECON 100 taught by Professor Pgking during the Spring '08 term at S.F. State.
- Spring '08