Econ - SecondPaper

Econ - SecondPaper - Second Econ Paper Question #2 Alexa...

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Second Econ Paper – Question #2 Alexa Papaila China can produce 100,000 barrels of rice or 40,000 barrels of potatoes in 10  hours. The Netherlands can produce 25,000 barrels of rice or 120,000 barrels of potatoes  in 10 hours. 1000’s of Barrels Produced per 10 Hours Rice Potatoes China 100 40 Netherlands 25 120 Total 125 160 Absolute advantage: A country has an absolute advantage in the production of a good if that country  can produce that good using fewer resources than another country would. With rice,  China has an absolute advantage over the Netherlands because China produces 4 barrels  of rice for every barrel of rice the Netherlands produce, assuming both countries have the  same amount of land and capital. With potatoes, the Netherlands has an absolute  advantage because they can produce 3 barrels of potatoes to every barrel of potatoes  China can produce. 
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This note was uploaded on 04/07/2008 for the course ECON 100 taught by Professor Vrooman during the Spring '07 term at Vanderbilt.

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Econ - SecondPaper - Second Econ Paper Question #2 Alexa...

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