Suppose That: • Malaysia Requires an Hour of Labor to Produce a Produce

question 148

Essay

Suppose that:
• Malaysia requires an hour of labor to produce a pound of rice and 2
hours of labor to produce a pencil;
• Indonesia requires 2 hours of labor to produce a pound of rice and 4
hours of labor to produce a pencil;
• each country has 10,000 hours of labor to allocate between the
production of rice and pencils; and
• in autarky, Malaysia consumes 5,000 pounds of rice and 2,500
pencils.
Which country has an absolute advantage in rice production? In pencil
production?
Which country has a comparative advantage in rice production? In pencil
production?
Will trade between the two countries be mutually beneficial?

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Definitions:

Motivation

Motivation is the process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to pursue certain actions.

Resilience

The capacity to recover quickly from difficulties; toughness or adaptability in facing challenges.

Attitude

A settled way of thinking or feeling about someone or something, typically reflected in a person’s behavior.

Empathetic

The ability to understand and share the feelings of another person from their perspective.