Question 1

. Assuming that there are only two nations in the world, Africa and the USA, each nation produces gold (G) and corn (C). Also assume that labor is the only factor of production. The table below shows how much of each good a country can produce using one hour of labor time. AFRICA GASOLINE barrels/hr CORN tonnes/hr ,.Identify which country has the Absolute Advantage and Disadvantage in each good. Justify your answer. .Identify which country has the Comparative Advantage and Disadvantage in each good. Justify your answer. .What is a term of trade? Identify the term of trade for both countries. Justify your