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Assume That the World Economy Consists of Two Countries: Russia

question 4

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Assume that the world economy consists of two countries: Russia and Republic of Belarus. Each country can produce tomatoes and potatoes. Russia can produce 1000 tons of tomatoes or 3000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 3 × tomatoes = 3000. Republic of Belarus can produce 500 tons of tomatoes or 1000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes + 2 × tomatoes = 1000. Countries can freely trade with each other.
-Which country has comparative advantage in producing potatoes?


Definitions:

Desensitization

A psychological process through which an individual's emotional response to a previously inducing stimulus is reduced, often used as a treatment for phobias.

Free Association

A psychoanalytic technique where patients express thoughts and feelings exactly as they occur, with as little censorship as possible, to uncover unconscious processes.

Unconscious Thoughts

Mental processes that occur without conscious awareness, influencing behavior, perceptions, and emotions.

Psychoanalysis

A therapeutic approach founded by Sigmund Freud that seeks to explore the unconscious mind to uncover repressed thoughts and feelings affecting current behavior.

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