Consider the production productivity matrix of two goods from the US and India: United States of America IndiaLabor force200800Labor per unit corn850Labor per unit automobile1040 1. How many units of corn will the US produce should it exhaust all its labor force to produce corns?Group of answer choices201625Not enough data2. How many units of corn will India produce should it exhaust 3/4s of its labor force to produce corns?Group of answer choices201625123. Between the USA and India, which country has a comparative advantage in the production of automobiles?Group of answer choicesIndiaUSANone of the countriesNot enough data4. How many units of automobiles will the US produce should it exhaust half of its labor force to produce automobiles?Group of answer choices201025Not enough data5. How many units of automobiles will India produce should it exhaust all its labor force to produce automobiles?Group of answer choices20162512

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MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 9SQ

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Consider the production productivity matrix of two goods from the US and India:

	United States of America	India
Labor force	200	800
Labor per unit corn	8	50
Labor per unit automobile	10	40

1. How many units of corn will the US produce should it exhaust all its labor force to produce corns?

Group of answer choices

20
16
25
Not enough data

2. How many units of corn will India produce should it exhaust 3/4s of its labor force to produce corns?

Group of answer choices

3. Between the USA and India, which country has a comparative advantage in the production of automobiles?

Group of answer choices

India
USA
None of the countries
Not enough data

4. How many units of automobiles will the US produce should it exhaust half of its labor force to produce automobiles?

Group of answer choices

20
10
25
Not enough data

5. How many units of automobiles will India produce should it exhaust all its labor force to produce automobiles?

Group of answer choices

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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