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i need ans 13. French and German workers can each produce 5 cars a year. A French worker can produce 10 motorbikes a year, and
i need ans
13. French and German workers can each produce 5 cars a year. A French worker can produce 10 motorbikes a year, and German worker can produce 12 motorbikes a year. Assume that each country has 100 million workers. a) Draw the production table. b) Which country has an absolute advantage in producing cars? In producing motorbikes? Explain! c) If these countries were open to trade, which country would export cars? Which country will export motorbikes? Draw a table presenting the comparative advantage of producing cars and motorbikes by both countries! d) Suppose that without trade the workers in each country spend half of their time producing each good. What quantity of cars and motorbikes each of these two countries will produce in that case? (Draw a table)! Answer: B I U $ G CStep by Step Solution
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