Austria has 1000 production units 8 containers/unit 15 containers/unit Russia ha

Question

Austria has 1000 production units 8 containers/unit 15 containers/unit Russia has 1000 production units 3 containers/unit 12 containers/unit 4) Absolute Advantage: Austria has alan, __ over Russia in a) absolute disadvantage; digital cameras b) absolute disadvantage; snowboards c) absolute advantage; both cameras and snowboards d) none of the above 5) Comparative Advantage: Austria has a comparative advantage over Russia in the at a ratio of production of a) snowboards; 5 to 4 b) cameras; 8 to 3 c) snowboards; 8 to 3 d) cameras; 3 to 8 6) If each country specializes in their production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per 1 digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia? a) 9,000 snowboards and 5,000 digital cameras b) 3,000 snowboards and 3,000 digital cameras c) 3,000 snowboards and 9,000 digital cameras d) There is not enough information to answer this question. 7) If each country specializes in their production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per 1 digital camera, how many cameras and snowboards will be available to be consumed in Russia if they trade 9,000 snowboards to Austria? a) 9,000 snowboards and 5,000 digital cameras b) 3,000 snowboards and 9,000 digital cameras c) 3,000 snowboards and 3,000 digital cameras d) There is not enough information to answer this question

Explanation / Answer

4. C. Absolute advantage : Both cameras and snowboards

5 B Cameras 8 to 3

6 A 9000 snowboards and 5000 digital cameras

7. C 3000 snowboards and 9000 digital cameras

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