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Question: an american worker can produce either 5 cars or 8...

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An American worker can produce either 5 cars or 8 tons of grain a year. A lapanese worker can produce either 4 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers Complete the foflowing table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car 1 Ton of Grain United StatesY Japan 1,/9 1/3 1/5 1/4 Use the blue Nne (circle symboi) to a graph the production possibxibes n possidities e Japanese econony frontier for the Amencan economy. Then use the green ine (triangle symbo) to US Japan 0 100 200 300 400 C00 000 000 1000 Grain (Milions of tons) Complete the following table by determining the opportunity cost of a car and of a ton of grain for both the United States and Japan. Opportunity Cost of 1 Car I Ton of Grain (In terms of tons of grain given up)In terms of cars given up) United States 1/8. 5/8. 1&3/5. 5 apan Given this information, has an absolute advantage in producing cars, and has an absolute advantage in producing grain. neither, Japan, U.s neither, Japan, U.S neither, Japan, U.S Also, neither. Japan, U.S has a comparative advantage in producing cars, and has a comparative advantage in producing orain. Assume that without trade, half of each countrys warkers praduce cars and half produce grain. Complete the following table with the quantities of cars produced and consuned in each country if there is no trade. Cars Produced and Consumed Tons of Grain Produced and Consumed (Millions) (Millions) United States Japan True or False: Both countries would be better off if they produced the good in which they have a comparative advantage and then traded 200 million ton s of grain for 100 million cars. False

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