The Only Two Countries in the World, Alpha and Omega

question 146

Essay

The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers.
Alpha's Production Possibilities Frontier
Omega's Production Possibilities Frontier ​
a.Assume that each country decides to use half of its resources in the production of each good.Show these points on the graphs for each country as point A.
b.If these countries choose not to trade, what would be the total world production of popcorn and peanuts?
c.Now suppose that each country decides to specialize in the good in which each has a comparative advantage.By specializing, what is the total world production of each product now?
d.If each country decides to trade 100 units of popcorn for 100 units of peanuts, show on the graphs the gain each country would receive from trade.Label these points B.

---

Definitions:

Progressivism

A political and social movement advocating for reforms to address issues arising from industrialization, urbanization, and corruption, emphasizing improvements in social justice and the expansion of democracy.

Age Groups

Classifications of the population based on age, often used for demographic, marketing, or research purposes.

Political Polarization

The process by which the public's political opinions diverge significantly, often leading to two major, opposing viewpoint groups within a society.

Congressional Republicans

Members of the United States Congress who are part of the Republican Party, typically advocating conservative policies.