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The following table describes the production possibili-
ties oftwo cities in the country of Baseballia:
Pairs of Red Socks Pairs of White Socks
per Worker per Hour 。 per Worker per Hour
Boston 3 3
Chicago 六 品
aa Without trade, whatis the price of white socks
(in terms of red socks) in Boston? What is the
Price in Chicago?
b.。 Which city has an absolute advantage in the
Production of each color sock? Which city hasa
comparative advantage in the production ofeach
color sock?
c Ithecities trade with each other which color sock
will each export?
d. What is the range of prices at which trade can
occur?
2 AGerman worker takes 400 hours to produceacar
and 2 hours to produceacase of wine.AFrench
worker takes 600 hours to produceacarand X hours
es
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2 廊 過
D. Itnese counrries
try would export:
example and shov
country would be
c Explain at whatp
of shirts) the two。
d. Suppose that Chir
productivity so th
100 shirts or 20 coi
would you predic
in Chinese produc
being ofthe twoc
Are the following stai
each case-
aa. “Two countries ca
ifone of the count
in the production
b. “Certain talented
advantageinever
c. “Ifacertain trade
be good for the ot
d. “Ifacertain trade
always good for
e. “Iftrade is good f
全