Question

1. \( \mathbf{( 2 0} \%) \) You are given the following data on producing 2 products in 2 countries (see the table): \begin{tabular}{|l|c|c|} \hline & Productivity (per 1 unit of a resource) \\ \hline & Meat (tons) & Cheese (tons) \\ \hline Country A & 30 & 10 \\ \hline Country B & 5 & 5 \\ \hline \end{tabular} On the basis of these data, 1.1. Indicate the only right statement: a) Country \( \mathrm{A} \) has comparative advantage in producing meat; b) Country B should produce and export meat; c) Country B has comparative advantage in producing both goods; d) Country A has no comparative advantage. 1.2. What is the relative price at which meat and cheese should be exchanged in trade between the two countries? a) 1 ton of meat for 1.5 tons of cheese; b) 2.5 tons of cheese for 1 ton of meat; c) 2 tons of cheese for 1 ton of meat; d) None of the above. Prove your answers with calculations!

          1. \( \mathbf{( 2 0} \%) \) You are given the following data on producing 2 products in 2 countries (see the table):
\begin{tabular}{|l|c|c|}
\hline & Productivity (per 1 unit of a resource) \\
\hline & Meat (tons) & Cheese (tons) \\
\hline Country A & 30 & 10 \\
\hline Country B & 5 & 5 \\
\hline
\end{tabular}

On the basis of these data,
1.1. Indicate the only right statement:
a) Country \( \mathrm{A} \) has comparative advantage in producing meat;
b) Country B should produce and export meat;
c) Country B has comparative advantage in producing both goods;
d) Country A has no comparative advantage.
1.2. What is the relative price at which meat and cheese should be exchanged in trade between the two countries?
a) 1 ton of meat for 1.5 tons of cheese;
b) 2.5 tons of cheese for 1 ton of meat;
c) 2 tons of cheese for 1 ton of meat;
d) None of the above.

Prove your answers with calculations!

1. ( 2 0%) You are given the following data on producing 2 products in 2 countries (see the table):

Productivity (per 1 unit of a resource)

Meat (tons) Cheese (tons)

Country A 30 10

Country B 5 5

On the basis of these data,
1.1. Indicate the only right statement:
a) Country A has comparative advantage in producing meat;
b) Country B should produce and export meat;
c) Country B has comparative advantage in producing both goods;
d) Country A has no comparative advantage.
1.2. What is the relative price at which meat and cheese should be exchanged in trade between the two countries?
a) 1 ton of meat for 1.5 tons of cheese;
b) 2.5 tons of cheese for 1 ton of meat;
c) 2 tons of cheese for 1 ton of meat;
d) None of the above.

Prove your answers with calculations!

Added by Tracey I.

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