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

question 90

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.

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Definitions:

Cognitive Therapists

Mental health professionals who focus on identifying and changing negative and dysfunctional thought patterns.

Negative Thoughts

Unfavorable or pessimistic ideas and beliefs that can affect one's mood and behavior.

Evidence

Information or facts presented in support of an assertion, claim, or case.

Rational-Emotive Therapy

A form of psychotherapy that identifies irrational beliefs, challenging and changing these beliefs to more rational ones.