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Mr. abed collected data on the production of orange and apple in both Australia and Chain by using per unit (1) of resource.  The following table represents his collected data>

table : Production per unit (1) of resources

country          apple                orange

Australia        50                     20

china                2                     12

questions:

(a) Which country has an  absolute advantage in the  production of apple: of Orange?

(b) What is the apportunity cost of price of  producting an apple at in Australia?  in china?

(c) Which country has a comparative advantage in  the production of apple? of orange?

(d) Suppose that Australia had only 2 units of resources while china has 10 units of resources.

Draw each country's production possibility curve> (assume constant costs).

Macroeconomics, Economics

  • Category:- Macroeconomics
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