7. Problems and Applications Q4 Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year. The opportunity cost of producing a car in Japan is bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is cars. Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars. Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars. ? 20 Japan 18 16 14 12 10 B 4 2 。 S 50 100 150 200 250 300 350 400 Wheat (millions of bushels) 101 PPF accept the deal the United States proposes. Without Trade * Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat. With Trade On the previous graph, use the grey point (star symbol) to indicate the consumption bundle Japan can achieve with trade if it continues to consume 15 million cars.
7. Problems and Applications Q4 Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year. The opportunity cost of producing a car in Japan is bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is cars. Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars. Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars. ? 20 Japan 18 16 14 12 10 B 4 2 。 S 50 100 150 200 250 300 350 400 Wheat (millions of bushels) 101 PPF accept the deal the United States proposes. Without Trade * Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat. With Trade On the previous graph, use the grey point (star symbol) to indicate the consumption bundle Japan can achieve with trade if it continues to consume 15 million cars.
Chapter1: Making Economics Decisions
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Transcribed Image Text:7. Problems and Applications Q4
Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year.
The opportunity cost of producing a car in Japan is bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is
cars.
Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol)
to indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars.
Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol)
to indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars.
(suora)
Japan.
Cars (millions)
20
10
16
14
12
10
4
2
0
D
50 100 150 200 250 300 350 400
Wheat (millions of bushels)
10
PPF
accept the deal the United States proposes.
'+
Without Trade
*
Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.
With Trade
On the previous graph, use the grey point (star symbol) to indicate the consumption bundle Japan can achieve with trade if it continues to consume
15 million cars.
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