Imagine that it takes an average Australian miner 10 hours to mine a metric tonne of coal

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Imagine that it takes an average Australian miner 10 hours to mine a metric tonne of coal and 20 hours to mine a metric tonne of manganese. It takes the average South African miner 4 hours to mine a metric tonne of coal and 12 hours to mine a metric tonne of manganese.

a. Create a table to show how productive each miner is in a day.

b. For each miner, calculate the opportunity cost of mining a tonne of coal and a tonne of manganese.

c. In what task does each miner have a comparative advantage?

d. Which resource will each country import? How about export?

e. Explain how markets provide the opportunity for the mining companies to specialize and earn gains from trade.

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Related Book For  book-img-for-question

Principles Of Macroeconomics

ISBN: 9781982166649

1st Canadian Edition

Authors: Betsey Stevenson, Justin Wolfers, Philip Oreopoulos, Kevin Milligan

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