Advanced Placement (AP), 15.10.2020 06:01 olson1312
5. The following figures represent the amount that can be produced with a fixed amount of resources.
Cars 3D Printers
Japan: 500 | 250
United: States 240 | 60
A. Is this an Input or Output Question? How do you know? What are the differences?
B. Which country has an absolute advantage in producing Cars? Which country has an absolute advantage
in producing TVs? Explain the difference between absolute and comparative advantage.
C. How is Per Unit Opportunity Cost calculated (equation)? What is Japan's opportunity cost for producing
one car? What is the opportunity cost for producing one TV in the U. S?
D. Identify which country has a comparative advantage in Cars. Which country has the comparative
advantage in TVs? Which product should Japan import? The United States? How do you know?
E. Identify a Terms of Trade that would benefit both countries? Why this would benefit BOTH countries?
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5. The following figures represent the amount that can be produced with a fixed amount of resources....
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