The Only Two Countries in the World,Alpha and Omega,face the Following

question 25

Essay

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:

Infections

The invasion and multiplication of microorganisms in body tissues, which can cause illness.

Regurgitate

Regurgitate means to bring swallowed food up again to the mouth; in the context of information, it means to repeat information without understanding it fully.

Left Atrium

A chamber out of the heart's four, it takes in blood enriched with oxygen from the lungs and propels it toward the left ventricle.

Blood Flow

The continuous circulation of blood through the cardiovascular system, delivering oxygen and nutrients to tissues and organs.