Advanced Placement (AP), 21.02.2022 03:10 chuckmoney1198
(a) Calculate the opportunity cost of a computer in China.
(b) If the two countries specialize and trade, which country will import computers? Explain.
(c) If the terms of trade are 4 cars for 1 computer, would trade be advantageous for each of the following?
(i) United States:
(ii) China:
(d) If productivity in China doubles, which country has the comparative advantage in the production of cars?
Answers: 2
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(a) Calculate the opportunity cost of a computer in China.
(b) If the two countries specialize and...
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