Given the input-output relationships in the table below:
$\begin{array}{}
& &emsp; &emsp; Countries \
& \text { A } & \text { B } \
\text { Goods } & & \
\text { X } & 8 & 4 \
\text { Y } & 4 & 1
\end{array}$
(a) Which country has absolute advantage in which good and why?
(b) Which country has comparative advantage in which good and why?
(c) If A is endowed with 8000 hours of labor,how much X will it produce after trade begins? How much Y? Explain.
(d) What is the allowable range on A's wages relative to B's if trade is flowing between these two countries according to comparative advantage?

Question

Given the input-output relationships in the table below:
$\begin{array}{} 
& &emsp; &emsp; Countries   \
& \text { A } & \text { B } \
\text { Goods } & & \
\text { X } & 8 & 4 \
\text { Y } & 4 & 1
\end{array}$ 
(a) Which country has absolute advantage in which good and why?
(b) Which country has comparative advantage in which good and why?
(c) If A is endowed with 8000 hours of labor,how much X will it produce after trade begins? How much Y? Explain.
(d) What is the allowable range on A's wages relative to B's if trade is flowing between these two countries according to comparative advantage?

Quizplus · Accepted Answer

The Answer of Given the input-output relationships in the table below:
$\begin{array}{} 
& &emsp; &emsp; Countries   \
& \text { A } & \text { B } \
\text { Goods } & & \
\text { X } & 8 & 4 \
\text { Y } & 4 & 1
\end{array}$ 
(a) Which country has absolute advantage in which good and why?
(b) Which country has comparative advantage in which good and why?
(c) If A is endowed with 8000 hours of labor,how much X will it produce after trade begins? How much Y? Explain.
(d) What is the allowable range on A's wages relative to B's if trade is flowing between these two countries according to comparative advantage?

Given the Input-Output Relationships in the Table Below (A) Which Country Has Absolute Advantage in Which Good and