MicroEconomics home-work help please. Thank you so much. 1. There are two countr
ID: 1095742 • Letter: M
Question
MicroEconomics home-work help please. Thank you so much.
1. There are two countries, East Dakota and West Dakota. Each country produces two products, tablet computers and yo-yos. In East Dakota, it takes 10 hours to make a computer, and 2 hours to make a yo-yo. In West Dakota, it takes 15 hours to make a computer, and 5 hours to make a yo-yo. Which of the following patterns of trade can make both countries better off?
2. There are two countries, East Dakota and West Dakota. Each country produces two products, tablet computers and yo-yos. In East Dakota, it takes 10 hours to make a computer, and 2 hours to make a yo-yo. In West Dakota, it takes 15 hours to make a computer, and 5 hours to make a yo-yo. Which of the following statements is true?
A.East Dakota trades yo-yos to West Dakota for computers at a rate of 4 yo-yos per computerExplanation / Answer
1.) choose A becuase it's the only option where both countries are better off.
East Dakota benefits because it gives 8 hours of yo-yo labor and receives 10 hours of computer labor.
West Dakota benefits because it gives 15 hours of computer labor and receives 20 hours of yo-yo labor.
2.) choose A becuase East Dakota is able to make yo-yo's much faster than West Dakota.