Q This assignment was locked Aug 4 at 11:59pm. Students may produce the following item on a separate document (Google Doc) and paste or attach the document for submission. BEFORE you attempt these problems, students should have reviewed the 3.2 Comparative Advantage Problem Solving videos and completed the 2.2 Advanced Explanation "How to solve for Inputs and Outputs." • A.2.2.2 Advanced Explanation- Comparative Advantage-How to solve for Inputs and Outputs • A.2.2.2.1 Advanced Explanation -Comparative Advantage #2 • A.2.3.1 Assigned Videos- Specialization and Comparative Advantage • A.2.3.2 Assigned Videos- Comparative Advantage-Problem Solving • A.2.3.3 Assigned Videos-Comparative Advantage -Summary and Review Q#1 Assume that Germany and France can switch between producing wine and producing sausages at a constant rate. • Labor Hours Needed to Make 1 Unit of Number of Units Produced in 80 Hours Wine Sausage Wine Sausage Germany 4 2 20 40 France 20 5 4 16 • Required Answers (you can cut and paste these questions and follow the sample answer below. • Production Ratios Wine to Sausage 1. Germany 2. France • Absolute Advantage 1. Wine 2. Sausage • Comparative Advantage 1. Wine 2. Sausage • Trading Ratios: 1. Germany will produce and export _______________ (Item and number of units) for _____________ (Item and number of units) 2. France will produce and export _______________ (Item and number of units) for _____________ (Item and number of units) • • Model for your Answer • Production Ratios Cheese to Bread 1. England 4 cheese to 1 Bread - Internal Cost (4C:1B) or (1C:1/4 B) 2. Spain 2 cheese to 1 Bread - Internal Cost(2C:1B) or (1C : 1/2 B) • Absolute Advantage 1. Cheese: England 2. Bread: England • Comparative Advantage 1. Cheese: England 2. Bread: Spain • Trading Ratios: 1. England will produce and export 1 unit of cheese in exchange for 1/3 unit of bread 2. Spain will produce and export 1 unit of bread in exchange for 3 cheese.