微观经济学p进rinc-ch023-presentation.pptVIP

With half the workers in each country producing each of the goods, the U.S. would produce 200 million cars (that’s 50 million workers times 4 cars each) and 500 million tons of grain (50 million workers times 10 tons each). Japan would produce 200 million cars (50 million workers times 4 cars each) and 250 million tons of grain (50 million workers times 5 tons each). Question: Without trade, suppose each country uses half its labor to produce each of the two goods. What quantities of computers and wheat does each country produced? How much does each of them consume? * * * This definition of comparative advantage is new to the 4th edition. The definition from the 3rd edition read “the comparison among producers of a good according to their opportunity cost.” The new definition is more precise. * * * * ** Using this information to draw Japan’s PPF requires a calculator (or the ability to do long division). ** If your students have the “gutted handout” of these slides, they can draw their PPF on the axes provided on the following slide. This activity should take only 3 minutes of class time. It’s good practice review for students, and helps break up the lecture. * ** Using this information to draw Japan’s PPF requires a calculator (or the ability to do long division). ** If your students have the “gutted handout” of these slides, they can draw their PPF on the axes provided on the following slide. This activity should take only 3 minutes of class time. It’s good practice review for students, and helps break up the lecture. * Horizontal intercept: (30,000 labor-hours)/(125 hours per computer) = 240 computers. Vertical intercept: (30,000 labor-hours)/(25 hours per ton of wheat) = 1200 tons of wheat. * * * * Here, the “rise” is a negative number, because, as you move to the right, the line falls (meaning wheat output is reduced). Moving to the right involves shifting resources from the production of wheat (which causes wheat output to fall) to