ECS3702 Assignment 2 Full Solutions Semester 2 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)...........
Question 1A Use the hypothetical information in the table below to answer the questions th...
ECS3702
ASSIGNMENT 2 SEMESTER 2 2024
UNIQUE NO.
DUE DATE: 6 SEPTEMBER 2024
, ECS3702
Assignment 2 Semester 2 2024
Unique Number:
Due Date: 6 September 2024
International Trade
QUESTION 1A
(i) Identify the product of absolute advantage and disadvantage for both Unos
and Tres. Explain your answer. [4 marks]
Answer:
Absolute advantage refers to the ability of a country to produce more of a good with the
same resources compared to another country. In the case of Unos and Tres:
Unos has an absolute advantage in producing cellphones because they can
produce 18 tons of cellphones per hour, compared to Tres, which can only
produce 6 tons per hour.
Tres has an absolute advantage in producing candles, as they can produce 8
tons of candles per hour, while Unos can only produce 6 tons per hour.
So, Unos has the absolute advantage in cellphones, and Tres has the absolute
advantage in candles.
(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]
Answer:
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