Homework answers / question archive / Use the table below to answer the questions that follow Output Kenya Lesotho Tea (ton/hr) 8 2 Wool (ton/hr) 6 4     Indicate the commodity of each nation’s comparative advantage and disadvantage

Use the table below to answer the questions that follow Output Kenya Lesotho Tea (ton/hr) 8 2 Wool (ton/hr) 6 4     Indicate the commodity of each nation’s comparative advantage and disadvantage

Economics

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Use the table below to answer the questions that follow Output	Kenya	Lesotho
Tea (ton/hr)	8	2
Wool (ton/hr)	6	4

 

 

1. Indicate the commodity of each nation’s comparative advantage and disadvantage. No marks will be awarded if you do not show your workings.

 

 

ii If Kenya exchanges 8T for 8W with Lesotho,

 

(a) How much does Kenya gain in terms of wool? And how many hours does Kenya save?

Explain

 

How much does Lesotho gain in terms of Wool? Explain

 

What is the range of mutually beneficial trade? Explain