Quebec Is Capable of Producing 10,000 Pallets of Wood Shingles

question 86

Essay

Quebec is capable of producing 10,000 pallets of wood shingles or 8,000 barrels of maple syrup. Vermont is capable of producing 12,000 pallets of wood shingles or 12,000 barrels of maple syrup. a. Graph these production possibilities curves. Indicate from the slope, which has the absolute advantage, which the comparative advantage, and whether there are gains from trade. b. Assume that Vermont and Quebec each specializes in the good in which they have a comparative advantage. Suppose that Vermont and Quebec decide to trade 5,000 pallets of shingles for 5,000 barrels of syrup. Indicate this on the graph. How does this affect the well-being of the two societies? Explain.

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Definitions:

Frontal lobe

The part of the brain located at the front of each cerebral hemisphere, associated with reasoning, motor skills, higher level cognition, and expressive language.

Motor activity

Physical movements and actions generated by the body's muscle system.

Brain

An organ of the central nervous system in vertebrates, located in the skull and functioning as the primary center for controlling bodily activities and cognitive functions.

Temporal lobe

A region of the brain responsible for processing auditory information and is involved in understanding language, and storing new memories.