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Suppose That a Worker in Freedonia Can Produce Either 6

question 166

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Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Then suppose that trade is initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. What maximum amounts will Freedonia now be able to consume?

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Substances contributing to the greenhouse effect and global warming, typically including carbon dioxide, methane, nitrous oxide, and fluorinated gases.

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A natural area protected for its scenic beauty, biodiversity, and recreational opportunities, often managed by governments for conservation and public enjoyment.

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