ECS3702 Assignment 2 (COMPLETE ANSWERS) ; 100% TRUSTED Complete, trusted solutions and explanations.

ECS3702 Assignment 2 (COMPLETE ANSWERS) ; 100% TRUSTED Complete, trusted solutions and explanations. 

Question 1A Use the hypothetical information in the table below
to answer the questions that follow: Output/hr Unos Tres
Cellphones (ton/hr) 18 6 Candles (ton/hr) 6 8 (i) Identify the
product of absolute advantage and disadvantage for both Unos
and Tres. Explain your answer. [4 marks] (ii) From your answer
in (i) above, explain whether trade is possible and explain the
pattern of trade according to the theory of absolute advantage. [4
marks] 2 (iii) Determine the commodity of each nation’s
comparative advantage and disadvantage. No marks will be
awarded if you do not show your workings. [6 marks] 3 (iv)
From your answer in (iii) above, explain whether trade is
possible and the pattern of trade according to the theory of
comparative advantage. [6 marks] [20]
Question 1A: Analysis of Absolute and Comparative
Advantage
(i) Identify the product of absolute advantage and
disadvantage for both Unos and Tres. Explain your answer.
[4 marks]
ï‚· Absolute Advantage occurs when a country can produce
more of a good with the same amount of resources than
another country.
o Unos: Can produce 18 tons of cellphones per hour
and 6 tons of candles per hour.