Consider the Following Information About Production of Wine and Food

question 7

Essay

Consider the following information about production of wine and food in England and France: $$\begin{array} { | c | c | c | c | c | } \hline & { \text { England } } & &{ \text { France } } \\\hline \begin{array} { c } \text { Percentage } \\\text { of resources } \\\text { devoted to food }\end{array} & \begin{array} { c } \text { Food } \\\text { Produced } \\\text { (tons) }\end{array} & \begin{array} { c } \text { Wine } \\\text { Produced } \\\text { (gallons) }\end{array} & \begin{array} { c } \text { Food } \\\text { Produced } \\\text { (tons) }\end{array} & \begin{array} { c } \text { Wine } \\\text { Produced } \\\text { (gallons) }\end{array} \\\hline 100 & 500 & 0 & 50 & 0 \\\hline 80 & 400 & 10 & 40 & 100 \\\hline 60 & 300 & 20 & 30 & 200 \\\hline 40 & 200 & 30 & 20 & 300 \\\hline 20 & 100 & 40 & 10 & 400 \\\hline 0 & 0 & 50 & 0 & 500 \\\hline\end{array}$$ (a) Using the grids below, plot each country's production possibilities curve. (b) Which country has a comparative advantage in the production of food? Of wine? Explain.
(c) Suppose that currently England and France are not trading with each other.England is producing (and consuming) 200 tons of food and 30 gallons of wine.France is producing (and consuming) 30 tons of food and 200 gallons of wine.As an international trader, how could you take advantage of this situation and make the big bucks?

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Definitions:

Antagonistically

In a manner that shows active opposition or hostility towards something or someone.

Opposed Pairs

Terms, concepts, or entities that are directly opposite to each other in meaning or attributes.

Visible Spectrum

The portion of the electromagnetic spectrum that is visible to the human eye, typically encompassing wavelengths from approximately 380 to 750 nanometers.

Primary Colours

Basic colors (red, blue, and yellow) that can be combined to produce a wide spectrum of colors but cannot be created by mixing other colors.