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Absolute Advantage and Comparative Advantage Worksheet BLANK

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  Absolute Advantage and Comparative AdvantageWorksheet Assume that there are two nations in the world, Ireland and Switzerland, and that each country can produce only two products. Each country uses half of its resources on each  product. They can produce the following:WoolChocolateIreland,!!! g#,$!! gSwitzerland%,$!! g&,!!! g%.If the two nations do not trade, how much wool and chocolate is produced'&,$!! g%%,$!! g(.)ead the sentences and circle the correct word in *rac ets assuming the two nations do not trade:a.Ireland has a+n +a*solute, comparati-e ad-antage in the production of +wool, chocolate *.Switzerland has a+n +a*solute, comparati-e ad-antage in the production of +wool, chocolate.The two countries decide to trade. /ill in the following ta*le:WoolChocolateIrelandSwitzerlandTotal#.Will the countries gain from trading' E0plain'  Assume that there are two nations in the world, Italy and India, and that they can produce only two  products. Each country uses half of its resources on each product. They can produce the following: 1airs of ShoesComputersItaly(,!!!,!!!India%$,!!!%!,!!! %.If the two countries do not trade, how many pairs of shoes and computers will *e produced'(.India has an a*solute ad-antage in *oth products, what does this mean'.Calculate the opportunity cost of producing a pair of shoes for *oth countries'#.Calculate the opportunity cost of producing computers for *oth countries'$./ill in a new ta*le that shows what will happen if *oth countries specialize in trade: 1airs of ShoesComputersItalyIndiaTotal .2oes the world gain if the two countries trade'&.In this scenario, how many computers are lost to gain how many additional pairs of shoes'3./ill in a new ta*le to show that if India gi-es up production of some pairs of shoes, no computers are lost *ecause of trading: 1airs of ShoesComputersItalyIndiaTotal

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Jul 24, 2017
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