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9. (4 points) In Colombia, a worker can produce a bushel of corn in 8 hours or a bag of coffee in 1 hour. In
9. (4 points) In Colombia, a worker can produce a bushel of corn in 8 hours or a bag of coffee in 1 hour. In Brazil, a worker can produce a bushel of corn in 2 hours or a bag of coffee in 20 hours. Country Corn (hours per bushel) Coffee (hours per bag) Colombia 8 1 Brazil 2 20 a. Who has the absolute advantage in the production of corn? b. Who has the absolute advantage in the production of coffee? c. Which country has a comparative advantage in producing corn? d. Which country has a comparative advantage in producing coffee? e. Suppose that, before trade occurs, each country has 200 worker hours and produces the values given in the following table: Country Corn production (bushels) Coffee production (bags) Colombia 10 120 Brazil 50 5 Then, with a push toward specialization and trade, the countries redistribute their 200 worker hours and change production to the following table: Country Corn production (bushels) Coffee production (bags) Colombia 2 184 Brazil 90 With the information provided above, fill in the table: The Colombian economy, after specialization, will benefit The Brazilian economy, after specialization, will benefit if if it: it: Exports no more than Imports at least Imports at least Exports no more than
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