The Table Below Shows the Maximum Amounts of Food and Clothing

question 23

Essay

The table below shows the maximum amounts of food and clothing that two nations, A and B, can produce.Draw the production possibilities curve for A and B using the below graphs.Assume constant costs. (a) What is the cost ratio for the two products?(b) If each nation specializes according to comparative advantage, who should produce and trade each product? Why?(c) What will be the range for the terms of trade? If the terms are set at 1 food = 2 clothing, show how the trading possibilities lines will change in the graph.Explain.

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Definitions:

Proof Load

A specific load value, often used in testing, that a component or assembly can bear without permanent deformation or failure.

Tensile Strength

A measure of the maximum amount of stress a material can withstand while being stretched or pulled before breaking.

Minimum Yield Strength

The lowest stress at which a material begins to deform permanently, important in material selection for engineering.

Twisting Force

Also known as torque, it's the force that causes an object to rotate about an axis, fulcrum, or pivot.