Exam (elaborations)
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024
- Course
- Institution
- Book
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us...
-
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us...
-
ECS3702 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 - DUE 6 September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us...
Seller
Follow
THEBLAZE1
Reviews received
Content preview
,ECS3702 Assignment 2 (COMPLETE ANSWERS)Semester 2 2024 - DUE 6 September 2024 ; 100%
TRUSTED Complete, trusted solutions and
explanations.
Question 1A Use the hypothetical information in the table
below to answer the questions that follow: Output/hr Unos Tres
Cellphones (ton/hr) 18 6 Candles (ton/hr) 6 8 (i) Identify the
product of absolute advantage and disadvantage for both Unos
and Tres. Explain your answer. [4 marks] (ii) From your answer
in (i) above, explain whether trade is possible and explain the
pattern of trade according to the theory of absolute advantage.
[4 marks] 2 (iii) Determine the commodity of each nation’s
comparative advantage and disadvantage. No marks will be
awarded if you do not show your workings. [6 marks] 3 (iv)
From your answer in (iii) above, explain whether trade is
possible and the pattern of trade according to the theory of
comparative advantage. [6 marks] [20]
Output/hr Unos (units/hr) Tres (units/hr)
Cellphones 18 6
Candles 6 8
(i) Identify the product of absolute advantage and
disadvantage for both Unos and Tres. Explain your answer. [4
marks]
Absolute advantage is when one country can produce more of
a good with the same resources than another country.
, Unos:
o Cellphones: 18 units/hr
o Candles: 6 units/hr
Tres:
o Cellphones: 6 units/hr
o Candles: 8 units/hr
Unos has an absolute advantage in cellphones because it
can produce 18 cellphones per hour, while Tres can only
produce 6.
Tres has an absolute advantage in candles because it can
produce 8 candles per hour, while Unos can only produce
6.
Thus:
Unos has an absolute disadvantage in candles.
Tres has an absolute disadvantage in cellphones.
(ii) From your answer in (i) above, explain whether trade is
possible and the pattern of trade according to the theory of
absolute advantage. [4 marks]
According to the theory of absolute advantage, trade is
possible when each country specializes in the production of
goods where it has an absolute advantage and trades for the
other good.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller THEBLAZE1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.57. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78861 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now