USE THE FOLLOWING TABLE FOR EXERCISES 2-6 AMOUNT OF BEEF OR COMPUTERS PRODUCED B

Question

USE THE FOLLOWING TABLE FOR EXERCISES 2-6 AMOUNT OF BEEF OR COMPUTERS PRODUCED BY ONE WORKER IN A DAY CANADA JAPAN Beef 6 5 Computers 2 4 2- Which country has the absolute advantage in beef production? 3- Which country has the absolute advantage in computer production? 4- Which country has the comparative advantage in beef production? 5- Which country has the comparative advantage in computer production? 6- What are the limits of the terms of trade? Specifically, when is Canada willing to trade with Japan, and when is Japan willing to trade with Canada?

Explanation / Answer

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