32 28 Consumption After Trade 24 PPF 20 16 12 8 4 8 12 16 20 24 28 32 POTATOES (Millions of pounds) e following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A. s you did for Freedonia, place a black point (+ symbol) on the following graph to indicate Sylvania's consumption after trade. Sylvania 32 28 Consumption After Trade 24 20 16 12 PPF 4 4 8 12 16 20 24 28 32 POTATOES (Millions of pounds) ue or False: Without engaging in international trade, Freedonia and Sylvania would not have been able to consume at the after-trad indles. (Hint: Base this question on the answers you previously entered on this page.) O True O False
32 28 Consumption After Trade 24 PPF 20 16 12 8 4 8 12 16 20 24 28 32 POTATOES (Millions of pounds) e following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A. s you did for Freedonia, place a black point (+ symbol) on the following graph to indicate Sylvania's consumption after trade. Sylvania 32 28 Consumption After Trade 24 20 16 12 PPF 4 4 8 12 16 20 24 28 32 POTATOES (Millions of pounds) ue or False: Without engaging in international trade, Freedonia and Sylvania would not have been able to consume at the after-trad indles. (Hint: Base this question on the answers you previously entered on this page.) O True O False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Practice Pack
![32
28
Consumption After Trade
24
PPF
20
16
12
8
A
4
4
8
12
16
20
24
28
32
POTATOES (Millions of pounds)
The following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A.
As you did for Freedonia, place a black point (+ symbol) on the following graph to indicate Sylvania's consumption after trade.
Sylvania
32
28
Consumption After Trade
24
20
16
12
PPF
A
4
4
8
12
24
POTATOES (Millions of pounds)
True or False: Without engaging in international trade, Freedonia and Sylvania would not have been able to consume at the after-trade consumption
bundles. (Hint: Base this question on the answers you previously entered on this page.)
True
O False
TEA (Millions of pounds)
TEA (Millions of pounds)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87aedfe3-194a-42e4-b574-69e2c3d463c9%2F290f6d34-ee59-46ef-aed5-ae42509890a6%2Fdfv2c05_processed.png&w=3840&q=75)
Transcribed Image Text:32
28
Consumption After Trade
24
PPF
20
16
12
8
A
4
4
8
12
16
20
24
28
32
POTATOES (Millions of pounds)
The following graph shows the same PPF for Sylvania as before, as well as its initial consumption at point A.
As you did for Freedonia, place a black point (+ symbol) on the following graph to indicate Sylvania's consumption after trade.
Sylvania
32
28
Consumption After Trade
24
20
16
12
PPF
A
4
4
8
12
24
POTATOES (Millions of pounds)
True or False: Without engaging in international trade, Freedonia and Sylvania would not have been able to consume at the after-trade consumption
bundles. (Hint: Base this question on the answers you previously entered on this page.)
True
O False
TEA (Millions of pounds)
TEA (Millions of pounds)
![When a country specializes in the production of a good, this means that it can produce this good at a lower opportunity cost than its trading partner.
Because of this comparative advantage, both countries benefit when they specialize and trade with each other.
The following graphs show the production possibilities frontiers (PPFS) for Freedonia and Sylvania. Both countries produce potatoes and tea, each
initially (i.e., before specialization and trade) producing 12 million pounds of potatoes and 6 million pounds of tea, as indicated by the grey stars
marked with the letter A.
Freedonia
Sylvania
32
32
28
28
24
PPF
24
20
20
16
16
12
12
PPF
8
8
4
4
4
8
12
16
20
24
28
32
4
8
12
16
20
24
28
32
POTATOES (Millions of pounds)
POTATOES (Millions of pounds)
Freedonia has a comparative advantage in the production of
while Sylvania has a comparative advantage in the
production of
Suppose that Freedonia and Sylvania specialize in the production of the goods in which each has a
comparative advantage. After specialization, the two countries can produce a total of
million pounds of tea and
million pounds of
potatoes.
Suppose that Freedonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a comparative
advantage. The countries decide to exchange 12 million pounds of potatoes for 12 million pounds of tea. This ratio of goods is known as the terms of
trade between Freedonia and Sylvania.
The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (+ symbol) on the
graph to indicate Freedonia's consumption after trade.
Note: Dashed drop lines will automatically extend to both axes.
Freedonia
TEA (Millions of pounds)
TEA (Millions of pounds)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87aedfe3-194a-42e4-b574-69e2c3d463c9%2F290f6d34-ee59-46ef-aed5-ae42509890a6%2Fl1qg1xo_processed.png&w=3840&q=75)
Transcribed Image Text:When a country specializes in the production of a good, this means that it can produce this good at a lower opportunity cost than its trading partner.
Because of this comparative advantage, both countries benefit when they specialize and trade with each other.
The following graphs show the production possibilities frontiers (PPFS) for Freedonia and Sylvania. Both countries produce potatoes and tea, each
initially (i.e., before specialization and trade) producing 12 million pounds of potatoes and 6 million pounds of tea, as indicated by the grey stars
marked with the letter A.
Freedonia
Sylvania
32
32
28
28
24
PPF
24
20
20
16
16
12
12
PPF
8
8
4
4
4
8
12
16
20
24
28
32
4
8
12
16
20
24
28
32
POTATOES (Millions of pounds)
POTATOES (Millions of pounds)
Freedonia has a comparative advantage in the production of
while Sylvania has a comparative advantage in the
production of
Suppose that Freedonia and Sylvania specialize in the production of the goods in which each has a
comparative advantage. After specialization, the two countries can produce a total of
million pounds of tea and
million pounds of
potatoes.
Suppose that Freedonia and Sylvania agree to trade. Each country focuses its resources on producing only the good in which it has a comparative
advantage. The countries decide to exchange 12 million pounds of potatoes for 12 million pounds of tea. This ratio of goods is known as the terms of
trade between Freedonia and Sylvania.
The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (+ symbol) on the
graph to indicate Freedonia's consumption after trade.
Note: Dashed drop lines will automatically extend to both axes.
Freedonia
TEA (Millions of pounds)
TEA (Millions of pounds)
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