4. Germany and Japan both produce cars and beer. The table below shows production possibilities per worker

Question:

4. Germany and Japan both produce cars and beer.

The table below shows production possibilities per worker in each country. For example, one worker in Germany produces 8 cars or 10 cases of beer per week. (For a review of absolute versus comparative advantage, see Chapter 2.)

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a. Which nation has an absolute advantage in car production? Which one has an absolute advantage in beer production? Explain your answers.

b. Which nation has a comparative advantage in car production? Which one has a comparative advantage in beer production? Explain your answers.

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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Question Posted: Oct 21, 2024 01:00 AM

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4. Germany and Japan both produce cars and beer. The table below shows production possibilities per worker

Question:

Labor force Cars (C) Beer (B) Germany Japan 200 8 10 100 20 14

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Principles Of Microeconomics

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