Chat with us, powered by LiveChat Costa Rica and Panama both produce avocados and bananas. Each country i - Writeedu

## 17 Mar Costa Rica and Panama both produce avocados and bananas. Each country i

All Problem Sets should be submitted to this page by the posted due date and time. Additionally, submissions MUST adhere to the following guidelines:

• All submissions should be typed (including math equations) and sent in a PDF file.
• Assignments should be professionally presented. Your name should appear at the top of each page as a header, and pages should be numbered.
• All graphs should be legible and accurate. Approximations and sloppy expositions are rarely sufficient for receiving credit.

Name: _______________________________

ECO 6936: Global Trade and Policy

Problem Set 1

Question 1

Costa Rica and Panama both produce avocados and bananas. Each country in endowed with a specific amount of labor and has a unit labor requirement for producing each product. Costa Rica is endowed with 14,000 units of labor, and Panama is endowed with 6,000 units of labor. The unit labor requirements are given as:

 Costa Rica Panama Unit Labor Requirement for Avocados aA=0.70 aA=0.75 Unit Labor Requirement for Bananas aB=0.50 AB=0.25

Part (i): Construct each country’s PPF. Place the quantity of avocados (measures in thousands) on the horizontal axis and the quantity of bananas (measured in thousands) on the vertical axis.

Part (ii): Which country has the comparative advantage in the production of avocados?

Part (iii): Which country has the comparative advantage in the production of bananas?

Question 2

Consider two countries, the United States and Canada, that each produce only two goods, lumber and steel. Each country in endowed with a specific amount of labor and has a unit labor requirement for producing each product. The figure below depicts each country’s PPF. PPFU is the United States’ PPF, and PPFC is Canada’s PPF.

Part (i): Which country has the absolute advantage in the production of lumber?

Part (ii): Which country has the absolute advantage in the production of steel?

Part (iii): Which country has the comparative advantage in the production of lumber?

Part (iv): Which country has the comparative advantage in the production of steel?

Question 3

Consider two countries, the Portugal and Spain, that each produce only two goods, ham and cod fish. Each country in endowed with a specific amount of labor and has a unit labor requirement for producing each product. The figure below depicts each country’s PPF. PPFP is Portugal’s PPF, and PPFS is Spain’s PPF.

Part (i): Suppose that Portugal has 40 available units of labor each week. What is Portugal’s unit labor requirement for producing units of ham?

Part (ii): Suppose that Spain’s unit labor requirement for producing cod fish is 0.40. How many units of labor does Spain have available each week?

## image2.emf

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteEdu. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?

Do you need help with this question?

Get assignment help from WriteEdu.com Paper Writing Website and forget about your problems.

WriteEdu provides custom & cheap essay writing 100% original, plagiarism free essays, assignments & dissertations.

With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.

Chat with us today! We are always waiting to answer all your questions.