1. Business
  2. Economics
  3. suppose that in a year an american worker can produce...

Question: suppose that in a year an american worker can produce...

Question details

Suppose that in a year an American worker can produce 80 shirts or 20 computers and a Chinese worker can produce 60 shirts or 20 computers. There are 1 million workers in each country Use the blue line (circle symbol) to graph the production possibilities frontier (PPF) for the United States, and use the green line (triangle symbol) to graph the production possibilities frontier for China 2 1 9 27 U.S. PPF 24 Σ 18 China PPF U.S. without Trade China without Trade 0 10 20 304050 60 70 80 90 100 Quantity of Shirts (Millions) Suppose that without trade the workers in each country spend half their time producing each good Use the black point (plus symbol) to indicate this production and consumption point for the United States, and use the grey point (star symbol) to indicate this production and consumption point for China 2 If these countries were open to trade, the United States ▼ would export shirts and from trade only China ▼ would benefitThe price of a computer can be expressed in terms of shirts. The highest price for which a computer can be traded that would make both countries better off is shirts per computer, and the lowest price that makes both countries better off is shirts per computer Suppose that China catches up with American productivity so that a Chinese worker can produce 80 shirts or 20 computers True or False: There are no longer gains from trade True O False

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution