6)Assume that in one hour workers in Country Two cna produce 3 bushels
of wheat or in one hour workers can produce 1 television.  For Country
Two the cost of producing one television is:
a)three units of wheat
b)1/3 a unit of wheat
c)two units of wheat
d)one unit of wheat

7)Assume that in one hour workers in Country One can produce 12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume that in one hour workers in Country Two can produce3 bushels of
wheat or in one hour workers can produce 1 television.  Country One
has a comparative advantage producing:
a)both wheat and televisions
b)only televisions
c)only wheat
d)does not have a comparative advantage in producing either good


8)Assume that in one hour workers in Country One can produce 12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume that in one hour workers in Country Two can produce 3 bushels
of wheat or in one hour workers can produce 1 television.  Country Two
has a comparative advantage in producing:
a)both wheat and televisions
b)only wheat
c)only televisions
d)does not have an comparative advantage


9)Assume that in one hour workers in Country One can produce 12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume Country One decides that it wants to consume 30 more
televisions.  If Country One decides to produce the televisions
themselves then the cost of the 30 televisions is equal to:
a)15 units of wheat
b)12 units of wheat
c)60 units of wheat
d)none of the above


10)Assume that in one hour workers in Country One can produce 12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume that in one hour workers in Country Two can produce 3 bushels
of wheat or in one hour workers can produce 1 television. If Country
One takes 60 units of wheat and offers to trade the wheat to Country
Two, what is the most televisions that Country Two will offer in
exchange for the 60 units of wheat?
a)180 televisions
b)20 televisions
c)5 televisions
d)none of the above

Hi k9queen!!


6) Assume that in one hour workers in Country Two cna produce 3
bushels
of wheat or in one hour workers can produce 1 television.  For Country
Two the cost of producing one television is...?

In the same time workers can produce 3 bushels of wheat or 1
television, then for each television produced we left to produce 3
bushels.
Then the cost of producing one television is three units of wheat. 

---------------------------------------------------

7) and 8) Assume that in one hour workers in Country One can produce
12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume that in one hour workers in Country Two can produce 3 bushels
of
wheat or in one hour workers can produce 1 television.  Country One
has a comparative advantage producing...?

Comparative Advantage: Producing a product or service at a lower
opportunity cost than someone else.

Country one:                  
Cost of produce 1 television:     2 units of wheat (= 12/6).
Cost of produce 1 unit of wheat:  1/2 a television.

Country two:
Cost of produce 1 television:     3 units of wheat.
Cost of produce 1 unit of wheat:  1/3 a television.

Comparing we have that country one has a lower opportunitty cost than
country two only with televisions. So the correct answer of question
7) is b).
Country two has a comparative advantage in producing wheat, so the
correct answer of question 8) is c).

-----------------------------------------------

9)Assume that in one hour workers in Country One can produce 12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume Country One decides that it wants to consume 30 more
televisions.  If Country One decides to produce the televisions
themselves then the cost of the 30 televisions is equal to...?

The cost of produce 1 television is 2 units of wheat (= 12/6); then
producing 30 televisions will cost 2 x 30 units of wheat = 60 units of
wheat.

The correct answer is c).

-------------------------------------------------

10)Assume that in one hour workers in Country One can produce 12
bushels of wheat or in one hour workers can produce 6 televisions. 
Assume that in one hour workers in Country Two can produce 3 bushels
of wheat or in one hour workers can produce 1 television. If Country
One takes 60 units of wheat and offers to trade the wheat to Country
Two, what is the most televisions that Country Two will offer in
exchange for the 60 units of wheat?

Country two will offer at the very most the cost of produce the 60
units of wheat itself. Because the cost of produce 3 units of wheat is
1 television, then the cost of produce 60 units of wheat is:
60/3 x 1 televisions = 20 televisions.
The correct answer is b).

-------------------------------------------

For more reference visit the following page:
"Why do countries trade?"
http://www.cr1.dircon.co.uk/TB/4/trade1.htm


I hope this helps you. Please feel free to request for any
clarification needed before rate this answer.

Best Regards.
livioflores-ga