Output Per Hour Worked Italy Wine 4 Liters Suits 3 2 A The Absolute Advantage In Wine Is Held By And The Absolute Advan 1 (57.14 KiB) Viewed 57 times
Output per hour worked Italy Wine 4 liters Suits 3.2 a. The absolute advantage in wine is held by and the absolute advantage in suits is held by b. The relative price of wine in Spain is suits (round to one decimal place) and the relative price of wine in Italy is suits(round to one decimal place). suits(round to one decimal place) and the opportunity c. The opportunity cost of wine in Spain is cost of wine in Italy is suits (round to one decimal place). and the comparative advantage in suits is d. The comparative advantage in wine is held by held by Spain 2 liters 0.4
suits and a lower bound of suits (round to e. The trade price of wine has an upper bound of one decimal place). f. Assume Spain has 20 hours it can allocate toward the production of wine and suits. Carefully follow the steps below to draw the required objects on the figure to the right. 1.) Using the line drawing tool, draw Spain's PPC given the data above. Properly label your line. 2.) Using the point drawing tool, assume Spain produces according to its comparative advantage and identify its production point. Label this point A. 3.) Using the line drawing tool, given the the trade price of suits is two liters of wine per suit, draw the trade line showing how Spain can gain from trade. Properly label your line. Carefully follow the instructions above, and only draw the required objects.
Suits 12- 11- 10- 9- 8- 7- 6- 5+ 4- 3- 2- 1- 0 10 Spain 20 Wine 30 40 50
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