Suppose the productivity ofa worker in Poland doubles so that a worker can produce 8 computers or
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Suppose the productivity ofa worker in Poland doubles so that a worker can produce 8 computers or 8 tons of grain per month. Which country has the absolute advantage in producing computers? grain?
'After the doubling of productivity in Poland, which country has a compara tive advantage in producing computers? grain? Has the comparative advantage changed? Has the material welfare of either country changed?
How would your analysis change ifyou .assumed, more realistically, that each country had 10 million workers?
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Related Book For
Study Guide For N. Gregory Mankiw's Principles Of Microeconomics
ISBN: 9783030019983
5th Edition
Authors: David R. Hakes
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