1000 0 computers 100 200 300 4 ac5ve learning

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Unformatted text preview: 3 Ac5ve Learning 1: Japan Without Trade Wheat (tons) 2,000 Suppose Japan uses half its labor to produce each good. Then it will produce and consume 120 computers and 600 tons of wheat. 1,000 0 Computers 100 200 300 4 Ac5ve Learning 1: Consump5on With and Without Trade •  Without trade, –  U.S. consumers get 250 computers and 2500 tons wheat. –  Japanese consumers get 120 computers and 600 tons wheat. •  We will compare consump5on without trade to consump5on with trade. •  First, we need to see how much of each good is produced and traded by the two countries. Ac5ve Learning 2 Consump5on under Trade Suppose the U.S. exports 700 tons of wheat to Japan, and imports 110 computers from Japan. (So, Japan imports 700 tons wheat and exports 110 computers.) •  How much of each good is consumed in the U.S.? Plot this combina5on on the U.S. PPF. •  How much of each good is consumed in Japan? Plot this combina5on on Japan’s PPF. Ac5ve Learnin...
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This homework help was uploaded on 03/11/2014 for the course ECON 1 taught by Professor Nagata during the Spring '08 term at UCLA.

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