Question
In each illustration given below identify the case of absolute advantage or comparative advantage (for South Africa and Kenya) and state if trade is possible
In each illustration given below identify the case of absolute advantage or comparative advantage (for South Africa and Kenya) and state if trade is possible or not. (Note that no computation of gains or loss is required here). (16 marks)
| CASE A | CASE B | CASE C | CASE D | |||||
| SA | KE | SA | KE | SA | KE | SA | KE | |
| WHEAT TONS/MANHOUR | 4 | 1 | 4 | 1 | 4 | 1 | 4 | 2 |
| CLOTH M/MANHOUR | 1 | 2 | 3 | 2 | 2 | 2 | 2 | 1 |
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Microeconomics Principles For A Changing World
Authors: Eric Chiang
4th Edition
1464186677, 978-1464186677
