2. Two countries, Haiti and

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.
School: UC Berkeley
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1824 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