There are two countries Home and Foreign. They can produce mo goods, apples andbananas. Home has 1,2fli] units of labor available and Foreign has a labor force of BUD. Thetable below contains the unit labor requirement in Foreign and Home for each of two goods. —— App-1ea3 = 1 hour per pound by, = 2 hours per pound at; = 4 hours per pound as. = 5 hours per pound 1. Which country has an absolute advantage in bananas“? In apples? 2. Graph Homes and Foreign’s production possibility frontiers.3. Find the opportunity cost of bananas in Home and in Foreign. 4. Which country has a comparative advantage in bananas? 5. Suppose that, after opening to trade, the equilibrium world relative price of bananasis LIT. lGraph how each oountry*s consumption poaibilities change, with bananas onthe horizontal axis. Label the axes and curves and give the slope of each curve. 6. Desm’ibe the pattern of trade. 7. Suppose the world price of bananas is $2 and of apples is $10. Find the hourly wagesin Home and Foreign. What is the relative wage? {Notice that Home is 4 times moreproductive in cheese and 2.5 times more productive in wine, so Home‘s relative wagewill fall somewhere between 2.5 and 4.} E. Show that both Home and Foreign gain from trade.

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.