A e B i Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. The opportunity cost of producing a car in Canada is is cars. Use the blue line (circle symbol) to draw Canada's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Canada can achieve without trade if it chooses to consume 10 million cars. Cars (millions) 20 16 16 14 12 10 6 4 2 0 0 150 200 250 Wheat (millions of bushels) 100 300 bushels of wheat, and the opportunity cost of producing a bushel of wheat in Canada 350 400 PPF Without Trade With Trade

A e B i Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. The opportunity cost of producing a car in Canada is is cars. Use the blue line (circle symbol) to draw Canada's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Canada can achieve without trade if it chooses to consume 10 million cars. Cars (millions) 20 16 16 14 12 10 6 4 2 0 0 150 200 250 Wheat (millions of bushels) 100 300 bushels of wheat, and the opportunity cost of producing a bushel of wheat in Canada 350 400 PPF Without Trade With Trade

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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