just need question 5 answered and explained Please use this information to answe
ID: 2814799 • Letter: J
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just need question 5 answered and explained
Please use this information to answer the next four questions, A typical US worker can produce of clothing per year ng per year, A typical German worker can proluce 3 SX00 units of food or 120 units US S. Based on the information given,the theory of comparative advamage suggests that B. US will be a net importer of clothing from Germany A. US will be a net exporter of clothing to CGenmany C. US will be a net importer of both clothing and food from Germany D. US will be a net exporter of both clothing and food to Germany 6 6. Based on the information given, the opportunity cost of I unit of food in the US is A. 40.00 units of clothing B. 0.040 units of clothing C. 0.025 units of clothing 3Explanation / Answer
given that- i ii iii=i/ii Item Germany US Food 3000 1600 1.875 clothinging 120 40 3.000 As per Comparative advantage theory, country should produce item for which it has higher advantage so that world production can be maximized. In our example Genmany has absolute advantage for both Food and clothing. However, relative advantage for clothing is higher 3 compared to food which is 1.875 US should produce Food and export the same and import clothing from Germany Correct answer is : B US will be net importer of clothinging from Germany.
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