The only two countries in the world,Alpha and Omega,face the following production possibilities frontiers.
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:
Complete Conquest
The total dominion or subjugation of a territory or people by military force.
Abraham Lincoln
The 16th President of the United States, who led the country during the Civil War and is celebrated for his leadership in preserving the Union and emancipating slaves.
Electoral Votes
Votes cast by members of the Electoral College, established by the United States Constitution, which formally determine the President and Vice President of the United States.
Popular Votes
The total number of votes or electoral support directly received by a candidate or political party from the general population in an election.
Q14: The producer who has the smaller opportunity
Q47: When quantity moves proportionately the same amount
Q61: A farmer has the ability to grow
Q139: A production possibilities frontier that is a
Q179: Refer to Figure 3-1.Suppose Cliff must work
Q180: Economists build economic models by<br>A)generating data.<br>B)conducting controlled
Q180: With respect to the variables price and
Q187: The term market always refers to<br>A)an arrangement
Q209: The supply of a good will be
Q235: Refer to Figure 2-8.What is the opportunity