Can you please check my work for my mico economics assignment and tell me if my answers are correct?

1. Suppose there are two countries: Canada and Japan, each producing 2 goods: cars and wheat. The only input they have is labor. Suppose both countries have 10 million workers. A Canadian worker can produce 10 tonnes of wheat per year or 4 cars. A Japanese worker can produce either 5 tonnes of wheat or 4 cars. Make a table of output per worker from the information in the question. Which country has an absolute advantage in Wheat? Cars? Explain why? Amount produced annually in millions Canada 40 16-0 Tones Japan 40 SCI Tones None of the two nations has an absolute advantage in car production as they are correspondingly productive. The two nations have a similar output per worker, which implies that every worker om the two countries produces the same number of cars in a given period. Canada has an absolute advantage in wheat production as it is more productive. It has a greater output per worker than Japan as one worker can produce 10 tons of wheat which is twice as much as one worker in Japan can produce. 2. Use the above information to draw the PPF of each country separately. If each country chooses to remain self-sufficient and devotes half its labor towards each good, how much of each good will be produced. Show this point on the PPF graph. Japan Canada Cars (millions) Cars (millions) 2 2.5 5 10 Wheat (tonnes) Wheat (tonnes) Both graphs are linear production possibility frontiers as there is a constant tradeoff between car and wheat production for both Canada and Japan. 2 Japan: From the Japan graph above, if Japan decides to be self-sufficient, it will produce two million cars and 2.5 million tons of wheat. This implies that more workers would be required to produce 2.5 tons of wheat than it would require to produce 2 million cars. Canada: The Canadian curve also demonstrates a constant opportunity cost which implies that to become sustainable, the country would have to allocate more workers to the production of cars, reducing the number of workers in wheat production. The country would have to produce 2 million cars and 5 million tons of wheat.3. Construct a table to show the opportunity cost of each country for each of the goods they produce. Which country has a comparative advantage in Wheat? Cars? Explain Why? Opportunity Cost One car (in terms of wheat) One Tone (In terms of a car) Canada 4/4 10/4 Japan 4/4 5/4 Canada has a comparative advantage in wheat production. The comparative advantage is due to the lower opportunity cost per every car given up. In Canada, a car is two times as a car expensive as in Japan. In Canada the cost of a car is equivalent to 2.5 tons of wheat, while it costs only 1.25 tons of wheat to buy the same car in Japan. On the other hand, Japan has a comparative advantage over Canada in car production as it has a significantly low opportunity cost per every tone of grain given up. A ton of grain is twice as expensive as it is in Canada.4. Using the information in the question, what price of wheat and cars will make trade beneficial for both countries if they choose to engage in trade? Explain as much as possible and you can give a range of prices if it is not possible to give the exact price. With half of the workers in the respective nations producing cars and wheat, Canada would produce 20 million cars (that is 5 million workers with each of them producing four cars) plus 50 million tons of wheat (that is 5million workers with each of them producing 10 tons of wheat). On the other hand, Japan would produce 20 million cars (5 million workers with each one of them producing four cars) and 25 million tons of wheat (5 million workers times 5 tons produced by every worker). If the two nations fail to engage in trade, each country will produce some cars and several tons of wheat. If one of Canada's workers started to produce wheat instead of producing cars, the worker would produce additional 10 tons of wheat while producing four fewer cars. If Canada decides to trade 7 tons of wheat with Japan for four cars, Canada will be comfortable with the business as four cars are valued at 10 tons of wheat based on the worker's production rate. Therefore, it would be ideal for Canada if the business happens. If one of Japan's workers starts to produce cars instead of wheat, the worker will make four extra cars while making five fewer tons of wheat. Therefore, Japan will be comfortable with this trade as it will value four cars at 5 tons of wheat. Therefore, it will be a profitable business in the eyes of the Japanese. With the trade and a change of one worker from Canada and Japan, the two nations will get the same number of cars as before they changed one of their workers to produce another product. However, they will both benefit from an additional ton of gran which will be 3 tons for Canada and 2 tons for Japan. Therefore, the trade through a change of production would benefit both countries and be sustainable for both