2. Two countries, Haiti and

FratBro23
Category:
Economics
Price: $15 USD

Question description

2. Two countries, Haiti and the Dominican Republic, produce rum and beer. Each island has a labor force of 2400 and the weekly productivity of each worker (in hundreds of cases) is as follow

Rum  Beer 

Haiti  2  4

Dominican Republic  3  9

  1. Which county has an absolute advantage in the production of Rum? Beer?


  2. Which country has a comparative advantage in the production of Rum? Beer?


  3. Sketch the production possibility frontier (PPF) of both countries

  4. Both countries want to produce an equal amount of cases of Rum and Beer. How should they allocate their workers to the two sectors? Show your table of production and graph it on the PPF


  5. Can specialization and trade move both countries beyond their PPF? How many (equal) cases will both countries end up with?



Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UC Berkeley
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors