Comparative advantage questions (Questions 1-4): Assume that China and France each have 1,000 production units....
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Comparative advantage questions (Questions 1-4): Assume that China and France each have 1,000 production units. With one unit of production China can produce either 10 containers of toys or 7 cases of wine. France can produce either 2 cases of toys or 7 cases of wine. 1. (2 points) Who is more efficient at producing toys? Explain why: 2. (2 points) Who is more efficient at producing wine? Explain why Now assume that at first no trade takes place. China allocates 800 production units to building toys and 200 production units to producing wine. France allocates 200 production units to building toys and 800 production units to producing wine. 3. (2 points) what is the production and consumption of toys and wine in China and France without trade? 4.(4 points) What is the production and consumption of toys and wine in China and France with complete specialization
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