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Which country has a comparative advantage in the production of consumer goods? Explain.

b) Calculate the unemployment rate in Country X. Show your work.

c) Calculate the labor force participation rate in Country X. Show your work.

d) Draw a correctly labeled graph of the production possibilities curve for Country X, with consumer goods on the horizontal axis and capital goods on the vertical axis. Indicate a point on your graph, labeled Z, that reflects the current level of unemployment.

a) Country X
b) Country Y
c) Both countries
d) Neither country

1 Answer

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Final answer:

A country has a comparative advantage in the production of consumer goods if it can produce those goods at a lower opportunity cost than other countries.

Step-by-step explanation:

A country has a comparative advantage in the production of consumer goods if it can produce those goods at a lower opportunity cost compared to other countries. The opportunity cost is the value of the next best alternative that is given up in order to produce a good. Let's consider Country X and Country Y. If Country X can produce consumer goods at a lower opportunity cost than Country Y, then Country X has a comparative advantage in the production of consumer goods.

To calculate the unemployment rate in Country X, you need the number of unemployed individuals and the total labor force. The formula for the unemployment rate is (number of unemployed / total labor force) * 100%. You need specific data for Country X to perform this calculation.

The labor force participation rate is the percentage of the working-age population that is either employed or actively seeking employment. The formula for the labor force participation rate is (labor force / working-age population) * 100%. Again, you need specific data for Country X to perform this calculation.

Unfortunately, the information provided does not include any data or specific details about Country X to draw a production possibilities curve or calculate the unemployment rate and labor force participation rate. Therefore, I cannot provide a more specific answer to these questions.

User Ben Dunlap
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