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:
Youthful Fertility
The ability or capacity of young individuals, typically in their teens and twenties, to reproduce or produce offspring.
Testosterone
A steroid hormone that stimulates development of male secondary sexual characteristics, produced mainly in the testes and also in the ovaries and adrenal cortex.
Homosexual Behavior
Homosexual behavior involves sexual or romantic attraction or activity between members of the same sex.
Evolutionary Psychologists
Psychologists who study how evolutionary theory, particularly the principles of natural selection, applies to human thoughts, feelings, and behaviors.
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