for column 1 and 2; hours required to harvest 1 brushel of: for column 3 and 4 b

Question

for column 1 and 2; hours required to harvest 1 brushel of:

for column 3 and 4 brushels of wheat or corn harvested in a 40hr week

Q1. Who has an absolute advantage in harvesting wheat from columns 1 and 2 of Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q2. Who has an absolute advantage in harvesting corn from columns 1 and 2 of the Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q3. Who has an absolute advantage in harvesting wheat from columns 3 and 4 of Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q4. Who has an absolute advantage in harvesting corn from columns 3 and 4 of Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q5. Who has a comparative advantage in harvesting wheat from columns 1 and 2 of Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q6. Who has a comparative advantage in harvesting corn from columns 1 and 2 of Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q7. Who has a comparative advantage in harvesting wheat from columns 3 and 4 of Table 1? a) Alpha; b) Beta; c) Neither Alpha nor Beta; d) Both Alpha and Beta.

Q8. What are the limits to trade in bushels of corn? a) 0.5W ? 1C ? 1.33W; b) 0.7W ? 1C ? 1.4W; c) 2W ? 1C ? 6W; d) a) 0.5W ? 1C ? 1.33W.

column 1: wheat column 2: corn column 3: wheat column 4: corn alpha 6 8 8 6 beta 48 24 1 2

Explanation / Answer

(Q1) (a)

In one hour,

Bushels of wheat harvested by Alpha = 1/6

Bushels of wheat harvested by Beta = 1/48

Since Alpha can harvest more bushels of wheat in a hour than Beta can [(1/6) > (1/48)], Alpha has absolute advantage in wheat.

(Q2) (a)

In one hour,

Bushels of corn harvested by Alpha = 1/8

Bushels of corn harvested by Beta = 1/24

Since Alpha can harvest more bushels of corn in a hour than Beta can [(1/8) > (1/24)], Alpha has absolute advantage in corn.

(Q3) (a)

In 40 hours,

Bushels of wheat harvested by Alpha = 8

Bushels of wheat harvested by Beta = 1

Since Alpha can harvest more bushels of wheat in 40 hours than Beta can [8 > 1], Alpha has absolute advantage in wheat.

(Q4) (a)

In 40 hours,

Bushels of corn harvested by Alpha = 6

Bushels of corn harvested by Beta = 2

Since Alpha can harvest more bushels of corn in 40 hours than Beta can [6 > 2], Alpha has absolute advantage in corn.

NOTE: As per Chegg Answering Policy, first 4 parts are answered.

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