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You must show all of your work where calculations are requir

Paper help Economics You must show all of your work where calculations are requir

Economics

You must show all of your work where calculations are requir

You must show all of your work where calculations are required and you must include a brief explanat… Show more You must show all of your work where calculations are required and you must include a brief explanation of approximately 50 words for written answers to receive full credit: Below is a hypothetical production possibilities table for Argentina and India. Each country can produce Beef and Cotton. Assume that before specialization and trade (i.e. if they are each self sufficient), Argentina produces 20 Beef and 40 Cotton and India produces 15 Beef and 180 Cotton: Production Possibilities Table %u2013 8 hours of production Argentina India Beef Cotton Beef Cotton 0 80 0 240 10 60 15 180 20 40 30 120 30 20 45 60 40 0 60 0 Graph the PPF for each of the two countries separately (you do not need to submit the graph for grading) and using the information above, please answer the following: a. Opportunity-cost ratios: Calculate the opportunity cost ratio for these two goods in Argentina. Calculate the opportunity cost ratio for these two goods in India. b. Absolute vs. comparative advantage: Which country has an absolute advantage in the production of Beef? Which country has an absolute advantage in the production of Cotton? Which country has a comparative advantage in the production of Beef? Which country has a comparative advantage in the production of Cotton? Suppose that instead of being self sufficient, these two countries decide to each specialize in the good in which they have the comparative advantage and then trade for the other good. Assume that the country that specializes in Beef trades 17 Beef to the other country (which specializes in Cotton) for 51 Cotton. c. What are the gains from specialization and trade for Argentina? d. What are the gains from specialization and trade for India? HINT: You may wish to construct a table like the one shown in the text to calculate your answers. • Show less

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