The Data Below Show the Total Production (In Millions) of the Only

question 122

Essay

The data below show the total production (in millions) of the only two goods produced in the countries of Carleton and Cumbria. $\begin{array} { l l l r } \text { Carleton } & 10 \text { binoculars } & \text { or } & 15 \text { cameras } \\\text { Cumbria } & 12 \text { binoculars } & \text { or } & 9 \text { cameras }\end{array}$ a) What is the opportunity cost of a binocular in Carleton?
b) What is the opportunity cost of a camera in Cumbria?
c) If, before trade, each country was devoting half its resources to producing each product, what is the total amount they were both producing?
d) If the two countries were to specialize in producing the product they do best, what would be the total amount they could produce?
e) What are the total gains as a result of specialization?

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Definitions:

Psychological Dependence

A condition characterized by a perceived need to continue using a substance due to emotional or mental attachment rather than physical dependence.

Delta Waves

A type of high amplitude brain wave found in humans, typically associated with deep non-REM sleep.

EEG Recordings

Graphical recordings of the electrical activity of the brain obtained through electrodes placed on the scalp, used in neurological diagnosis and research.

Biological Cycles

Natural rhythms in living organisms, such as circadian rhythms, that regulate physiological processes.