Help me please Suppose that a worker in Shipville an produce either 5 units of o

Question

Help me please Suppose that a worker in Shipville an produce either 5 units of oats or 20 pounds of tuna per year, and a worker in that a worker in Shipville can produce either 5 units of oats or 20 pounds of tuna per year, and a worker in d can produce either 20 units of oats or 5 pounds of tuna per year. There are 20 workers in each country. No Grainlan tr ade occurs between the two countries. Shipville produces and consumes 50 units of oats and 200 pounds of tuna per year while Grainland produces and consumes 200 units of oats and 50 pound of tuna per year. If trade were to occur. Shipville would trade 60 pounds of tuna for 60 units of oats.If Shipville now completely specializes in tuna how many pounds of tuna could it now consume along with the 60 units of imported oats? pounds of tuna for 60 units of oats. If Shipville now completely specializes in tuna production, O 140 pounds 340 pounds 460 pounds 400 pounds

Explanation / Answer

1. Answer B

If shipville produces 5 units of oats and 20 pounds of tuna per worker. Similarlarly, Grinland produces 20 units of oats and 5 pounds of Tuna. In the case of Shipville produces at 20 worker 50 units of oats and 200 units of tuna.

Now they can specilaizes only in Tuna. They can produce total of 400 pounds of tuna. If they trade 60 units of tuna for 60 pounds of tuna. now they can produce and consumes 340(400-60) pounds of tuna.

2. Answer B- Export tablets and import freezer.

Here mexico have absolute adventage in both goods. but in comparitive adventage Mexico produces 1/6 units tablets and 1/3 units of freezer. if they can specilizes in the production of tablets. they can produce and export tablets than freezer.

3. Answer B- Italy should export Cheese and import wines

4. Answer D

Here Brazil have comparitive adventahe in the production of soyabeens. so they can specialize in the production of soyabeans.

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