2. Draw a PPF given that Japan has 30,000 hours 9. Another term for lower opportunity cost in producing available, and it takes 125 hours to produce a computer a good is advantage. and 25 hours to produce 1 ton of wheat. 10. Gains from trade exist when opportunity costs are Japan different / the same between producers. 1200 11. Trade exists because of comparative / absolute 1000 advantage between trading partners. 800 12. True / False: Free trade produces overall benefits Wheat (tons) within a country. 600 13. True / False: Free trade benefits all parties within a 400 country. 200- 14. A country may want to restrict free trade: Computers (check all that apply) 40 80 120 160 200 240 280 for cultural reasons 2a. What is the opportunity cost of 1 ton of wheat? for national security 2b. What is the opportunity cost of 1 computer? to become more affluent 2c. If Japan were to devote its time equally to for political reasons computers and wheat, what is the level of consumption?EC201 Chapter 3 Gains from Trade 1. Draw a PPF given that the U.S. has 50,000 hours 3. Suppose the U.S. produces 3400 tons of wheat and available, and it takes 100 hours to produce a computer exports 700 tons of wheat to Japan, and imports 110 and 10 hours to produce 1 ton of wheat. computers from Japan, and Japan Produces 240 computers and no wheat. 6,000 - United States . How much of each good is consumed in the U.S.? Plot this combination on the U.S. PPF. 5,000- How much of each good is consumed in Japan? 4,000 Plot this combination on Japan's PPF. Wheat (tons) 3,000 4. Absolute advantage is the ability to produce a good using fewer / more / the same inputs than another 2,000 producer 1,00 5. Which country has an absolute advantage in Computers producing computers? 100 200 300 400 500 600 700 6. Which country has an absolute advantage in 1a. What is the opportunity cost of 1 ton of wheat? producing wheat? 1b. What is the opportunity cost of 1 computer? 7. Which country has a lower opportunity cost in producing computers? 1c. If the U.S. were to devote its time equally to computers and wheat, what is the level of 8. Which country has a lower opportunity cost in consumption? producing wheat? 2. Draw a PPF given that Japan has 30,000 hours 9. Another term for lower opportunity cost in producing available, and it takes 125 hours to produce a computer a good is advantage. and 25 hours to produce 1 ton of wheat. 10. Gains from trade exist when opportunity costs are Japan different / the same between producers. 1200 11. Trade exists because of comparative / absolute 1000 advantage between trading partners. 800 12. True / False: Free trade produces overall benefits Wheat (tons) within a country. 600 13. True / False: Free trade benefits all parties within a 400 country. 200 14. A country may want to restrict free trade: -Computers (check all that apply) 40 80 120 160 200 240 280