Ireland and Japan are assumed to produce only wool and steel,to have full employment and complete mobility of resources between industries.Their production possibilities boundaries before trade are drawn in solid lines.It is assumed that the two countries have the same amount of resources.Their consumption possibilities after trade are shown by the dotted lines.The outputs of wool and steel are given in physical units. FIGURE 32-1 Refer to Figure 32-1.Japan has an absolute advantage in

Question

Ireland and Japan are assumed to produce only wool and steel,to have full employment and complete mobility of resources between industries.Their production possibilities boundaries before trade are drawn in solid lines.It is assumed that the two countries have the same amount of resources.Their consumption possibilities after trade are shown by the dotted lines.The outputs of wool and steel are given in physical units.  FIGURE 32-1 Refer to Figure 32-1.Japan has an absolute advantage in

Quizplus · Accepted Answer

Japan has an absolute advantage in producing steel, as it can produce more steel than Ireland with the same resources.

Ireland and Japan Are Assumed to Produce Only Wool and Steel,to