8:49 il LTE https://undergrad.unilus.app/pluginfile... O ... Combination 2 Combination 3 Country B Efficient Attainable Unattainable Inefficient Combination 1 K M N Combination 2 R Combination 3 T U...

Extracted text: 8:49 il LTE https://undergrad.unilus.app/pluginfile... O ... Combination 2 Combination 3 Country B Efficient Attainable Unattainable Inefficient Combination 1 K M N Combination 2 R Combination 3 T U (22 Marks) b) Which country has an absolute advantage in production of wine? Justify your answer with empirical evidence. (2 Marks) c) Which country has an absolute advantage in the production of clothes? Justify your answer with empirical evidence. (2 Marks) d) Which country has a comparative advantage in the production of wine? Justify your answer with empirical evidence. (4 Marks) e) Which country has a comparative advantage in the production of clothes? Justify your answer with empirical evidence. (4 Marks) f) If both countries specialize in the production of the item they are good at, draw the PPF for the condition where trade can take place. (6 Marks) (TOTAL: 40 MARKS)

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Extracted text: 8:49 il LTE https://undergrad.unilus.app/pluginfile... S ... ASSIGNMENT NO HARD COPY OR EMAILED ASSIGNMENT WILL BE ACCEPTED. ALL SUBMISSIONS MUST BE VIA MOODLE PORTAL BEFORE THE DEADLINE (31ST MARCH 2021) QUESTION Country A and country B produce wine (w) and cloth (c). The Production Possibility y Frontier (PPF) for A and B can be represented by the following equations: A: 2w + 30 = 12 B: w +c = 5 The above equations have been drawn in the PPF diagrams below. Country A Country B 2 Wine Wine Consider the following combinations: Combination 1: 3 units of wine and 2 units of cloth Combination 2: 1 units of wine and 4 unit of cloth Combination 3: 2 units of wine and 2 unit of cloth a) Fill in spaces (A to V) in the following tables with either "Yes" or "No" for each of the above three (3) combinations. Country A Attainable Unattainable Efficient Inefficient Combination 1 A B D Combination 2 Combination 3 E F H J Country B Attainable Unattainable Efficient Inefficient Combination 1 K L M Combination 2 0 P R <> 3