Ch 5 Global Trade [AP & Reg]

Dcc rayland dcc 1b4h b 1 h dcc artland 1b2h b 1 h

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Unformatted text preview: . d. Ducky has a comparative advantage in clothing production, & Wucky has a comparative advantage in food production. e. Neither country has a comparative advantage in the production of either good. Country Food Clothing Food Ducky 20 hrs 50 hrs 1C = 2.5F; .4C = 1F Wucky 10 hrs 20 hrs 1C = 2F; .5C = 1F Terms of Trade might be 1C = 2.2F (59%) 8. Econ can produce either 2 tons of cocoa or 4 cars with 10 units of labor. (59%) Econ tons Nomics can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Nomics tons Based on this information, which of the following is true. a. Econ has an absolute advantage in the production of cocoa, while Nomics has a comparative advantage in the production of cocoa. b. Econ has a comparative advantage in the production of cocoa, while Nomics has a comparative advantage in the production of cars. c. Econ has an absolute advantage in the production of cocoa, while Nomics has a comparative advantage in the production of cars. d. Econ has a comparative disadvan...
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This note was uploaded on 07/20/2012 for the course ECON 2106 at GCSU.

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