Given: (1)two Nations (1 and 2)which Have the Same Technology

question 22

Essay

Given: (1)two nations (1 and 2)which have the same technology but different factor endowments and tastes, (2)two commodities (X and Y)produced under increasing costs conditions,and (3)no transportation costs,tariffs,or other obstructions to trade.Prove geometrically that mutually advantageous trade between the two nations is possible.Note: Your answer should show the autarky (no-trade)and free-trade points of production and consumption for each nation,the gains from trade of each nation,and express the equilibrium condition that should prevail when trade stops expanding.)

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Definitions:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any previous conditioning or learning.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, particularly his experiments with dogs that led to the discovery of the conditioned reflex.

B.F. Skinner

B.F. Skinner was an American psychologist and behaviorist known for his work in developing the theory of operant conditioning, emphasizing the effects of reinforcement and punishment on behavior.

Unconditioned Response

A natural, automatic reaction to a stimulus, not learned or based on past experience.