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:

Genetic Distance

Genetic distance is a measure of how different populations are from each other genetically. Genetic distance can inform population geneticists about levels of inbreeding within a population or about the historic relationships between populations or species.

Population

A group of individuals of the same species living in the same area at the same time, capable of interbreeding.

Time Separated

A phenomenon or process that is distinguished by a period of time, leading to a divergence in development or outcome.

Hardy-Weinberg Equilibrium

A principle stating that the genetic variation in a population will remain constant from one generation to the next in the absence of disturbing factors.