Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two countries begin to trade - Cambodia and Vietnam in the goods of rice of soybeans *Cambodia takes 30 hours to produce a ton of

Two countries begin to trade - Cambodia and Vietnam in the goods of rice of soybeans

*Cambodia takes 30 hours to produce a ton of soybeans and 10 hours to produce a ton of rice. *Vietnam produces take 40 hours to produce a ton of Soybeans and 15 hours to produce a ton of rice.

(a) Who has an absolute advantage in Soybeans?

(b) Who has a comparative advantage in Rice?

(c) The opportunity cost for one ton of soybeans is how many tons of rice in Vietnam?

(d) Would 0.35 tons of soybeans be a plausible terms of trade for rice after they open up to trade?

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

Step: 3

blur-text-image

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

Macroeconomics Principles and Applications

Authors: Robert E. Hall, Marc Lieberman

6th edition

1111822352, 1111822354, 9781133708742 , 978-1111822354

More Books

Students also viewed these Economics questions

Question

compare and contrast positivity and negativity;

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago