Consider Two Countries,A and B,that Can Use Their Productive Resources

question 44

Essay

Consider two countries,A and B,that can use their productive resources to produce two goods-computers and food.If country A devotes all of its resources to computer production,it produces 100 million computers.If it devotes its resources to food production,it produces 300 million units of food.Likewise,if country B devotes its resources to computer production,it produces 100 million computers.If B devotes its resources to food production,it produces 100 million units of food.In separate graphs,draw the production possibility curve for each country.What do the production possibilities curves show? Which country has comparative advantage in computer production? Which country has comparative advantage in food production? Explain.Suggest a mutually beneficial trading arrangement between these two countries.

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Definitions:

Chromosomes

Structures within cells that contain genetic material (DNA) and are responsible for determining the characteristics of an organism.

Adenine

A purine nucleobase used in forming nucleotides of the nucleic acids DNA and RNA, involved in cellular energy transfer and signaling.

Thymine

One of the four nucleotide bases of DNA, paired with adenine, and responsible for carrying genetic information.

Guanine

One of the four main nucleobases found in DNA and RNA, which pairs with cytosine and is essential for DNA replication and cellular function.