5. Suppose 2 separate economies can produce either Boats or Cars according to the following table. Assume each economy has a linear PPC (for mathematical ease). Waterworld Robotland All Boats (with no Cars) All Cars (with no Boats) 50 100 60 60 a. If there is no trade between these economies, Waterworld will produce 20 Boats and Robotland will produce 30 Boats. Assuming each produces on their PPC, how many Cars would each economy produce? Graph each economy's PPC and this "autarky" combination. b. If these economies were to trade with each other, which country would have comparative advantage in Boat production? How about Car production? Show the work to prove your answer. c. If each economy specializes in their comparative advantage good, state a mutually beneficial trade that would allow BOTH economies to end up with more of BOTH goods than they were able to achieve in the answer to part a.
5. Suppose 2 separate economies can produce either Boats or Cars according to the following table. Assume each economy has a linear PPC (for mathematical ease). Waterworld Robotland All Boats (with no Cars) All Cars (with no Boats) 50 100 60 60 a. If there is no trade between these economies, Waterworld will produce 20 Boats and Robotland will produce 30 Boats. Assuming each produces on their PPC, how many Cars would each economy produce? Graph each economy's PPC and this "autarky" combination. b. If these economies were to trade with each other, which country would have comparative advantage in Boat production? How about Car production? Show the work to prove your answer. c. If each economy specializes in their comparative advantage good, state a mutually beneficial trade that would allow BOTH economies to end up with more of BOTH goods than they were able to achieve in the answer to part a.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
![5. Suppose 2 separate economies can produce either Boats or Cars according to the following table. Assume each economy has a linear PPC (for
mathematical ease).
Waterworld
Robotland
All Boats (with no Cars) All Cars (with no Boats)
50
100
60
60
a. If there is no trade between these economies, Waterworld will produce 20 Boats and Robotland will produce 30 Boats. Assuming each produces
on their PPC, how many Cars would each economy produce? Graph each economy's PPC and this "autarky" combination.
b. If these economies were to trade with each other, which country would have comparative advantage in Boat production? How about Car
production? Show the work to prove your answer.
c. If each economy specializes in their comparative advantage good, state a mutually beneficial trade that would allow BOTH economies to end up
with more of BOTH goods than they were able to achieve in the answer to part a.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa55b5ab5-e66f-4ba0-8d78-f86e5de3ed57%2F50f14967-1800-4266-87ac-75c46bd122b3%2Fd0jy8s9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. Suppose 2 separate economies can produce either Boats or Cars according to the following table. Assume each economy has a linear PPC (for
mathematical ease).
Waterworld
Robotland
All Boats (with no Cars) All Cars (with no Boats)
50
100
60
60
a. If there is no trade between these economies, Waterworld will produce 20 Boats and Robotland will produce 30 Boats. Assuming each produces
on their PPC, how many Cars would each economy produce? Graph each economy's PPC and this "autarky" combination.
b. If these economies were to trade with each other, which country would have comparative advantage in Boat production? How about Car
production? Show the work to prove your answer.
c. If each economy specializes in their comparative advantage good, state a mutually beneficial trade that would allow BOTH economies to end up
with more of BOTH goods than they were able to achieve in the answer to part a.
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