There are 10 workers in Thailand and each can produce either 2 computers or 30 tons of

Question:

There are 10 workers in Thailand and each can produce either 2 computers or 30 tons of rice. There are 20 workers in the United States and each can produce either 5 computers or 40 tons of rice.
a. Draw the production possibilities frontier for each country. In each case, identify the intercepts and the slopes of the production possibilities frontier.
b. What is the of computers in Thailand? What is the of computers in the United States?
c. Which country has a comparative advantage in the production of computers?
d. In the absence of trade, if Thailand consumes 150 tons of rice, how many computers can it consume? In the absence of trade, if the United States consumes 50 computers, how many tons of rice can it consume?
e. Someone now proposes that the United States and Thailand enter into a trade agreement. Under this agreement, the United States will give Thailand 10 computers and Thailand will give the United States 120 tons of rice. If Thailand continues to consume 150 tons of rice, how many computers will it be able to consume under this proposal? If the United States continues to consume 50 computers, how many tons of rice will it be able to consume under this proposal?
f. Should Thailand accept this proposal? Should the United States accept this proposal? Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...