Exhibit 29-4

question 4

Essay

Exhibit 29-4
-(A)
Suppose country A has 100 units of labor and country B has 200 units of labor.Based on the information in Exhibit 29-4,draw the production possibilities curve for both countries,with radios on the horizontal axis.What is the slope of each curve?
(B)
Suppose the posttrade relative price is 1/3 radio per banana,or equivalently 1 radio per 3 bananas.Draw the posttrade production possibilities curve for each country and identify the production point for each country.

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Definitions:

Hub Carriers

Component of a vehicle's suspension system that holds the wheel bearing and is mounted on the suspension.

Damper

A device used to dampen or inhibit the oscillation of mechanical energy, often seen in vehicle suspension systems.

Torsion Bar

A length of steel bar fastened to a control arm at one point and the vehicle’s frame at another. Movement of the control arm imparts twist on the torsion bar. The absorption of the twist is the spring action of the torsion bar.

4WD

Four-Wheel Drive, a drive system where torque is supplied to all four wheels of the vehicle for improved traction.