2. Labor productivity coefficients for the US and Brazil are given by the following table:

Country

Wheat

per wkr

Clothingper wkr

Labor (number of workers

United States

2

8

100

Brazil

1

2

120

Questions

1. Who has theabsolute advantagein wheat?
2. What isthe opportunity costof 1 unit of wheat in the US? in Brazil?
3. What is the opportunity cost of 1 unit of clothing in the US? in Brazil?
4. Who has thecomparative advantagein Wheat? In Clothing?
5. Draw the production possibility frontier for the US.(Put Wheat on the Y axis and Clothing on the X axis)
6. For Brazil(Put Wheat on the Y axis and Clothing on the X axis)
7. Suppose each country decides to split its labor forceequallyon the production of each good. Locate the point on the PPF curve for each country that represents this allocation of labor.
8. What's their production and consumption combination # at this point?