Table 5.2 :
-Refer to Table 5.2. This table shows the number of labor hours required to produce a bicycle and a harmonica in Germany and Sweden.
a. Which country has an absolute advantage in the production of bicycles?
b. Which country has an absolute advantage in the production of harmonicas?
c. What is Germany's opportunity cost of producing one bicycle?
d. What is Sweden's opportunity cost of producing one bicycle?
e. What is Germany's opportunity cost of producing one harmonica?
f. What is Sweden's opportunity cost of producing one harmonica?
g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce bicycles?
h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce harmonicas?

Question

Table 5.2 : 
-Refer to Table 5.2. This table shows the number of labor hours required to produce a bicycle and a harmonica in Germany and Sweden.
a. Which country has an absolute advantage in the production of bicycles?
b. Which country has an absolute advantage in the production of harmonicas?
c. What is Germany's opportunity cost of producing one bicycle?
d. What is Sweden's opportunity cost of producing one bicycle?
e. What is Germany's opportunity cost of producing one harmonica?
f. What is Sweden's opportunity cost of producing one harmonica?
g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce bicycles?
h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce harmonicas?

Quizplus · Accepted Answer

The Answer of Table 5.2 : 
-Refer to Table 5.2. This table shows the number of labor hours required to produce a bicycle and a harmonica in Germany and Sweden.
a. Which country has an absolute advantage in the production of bicycles?
b. Which country has an absolute advantage in the production of harmonicas?
c. What is Germany's opportunity cost of producing one bicycle?
d. What is Sweden's opportunity cost of producing one bicycle?
e. What is Germany's opportunity cost of producing one harmonica?
f. What is Sweden's opportunity cost of producing one harmonica?
g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce bicycles?
h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce harmonicas?