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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 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. 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
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