Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

It takes Country A two hours to produce a unit of consumer goods and five hours to produce a unit of capital goods. Country B

  1. It takes Country A two hours to produce a unit of consumer goods and five hours to produce a unit of capital goods. Country B can produce a unit of consumer goods in one hour and a unit of capital goods in four hours. Which country has a comparative advantage in the production of consumer goods? Explain.
  2. Country A has the following labor market data:
Employed 91,000
Frictionally unemployed 4,000
Structurally unemployed 2,000
Cyclically unemployed 3,000
Not in the labor force, aged 16 years and over 25,000
  1. Calculate the unemployment rate for Country A.
  2. Calculate the labor force participation rate for Country A.
  3. Illustrate Country A's current employment of resources every 10 hours on a production possibilities curve with capital goods on the vertical axis and consumer goods on the horizontal axis. Assume constant opportunity costs. Indicate the current employment based on the data from (b) with a point labeled E.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Marketing

Authors: Raymond Frost

7th Edition INTERNATIONAL EDITION

0132953443, 978-0132953443

More Books

Students also viewed these Economics questions

Question

Wear as little as possible

Answered: 1 week ago

Question

Be relaxed at the hips

Answered: 1 week ago