Below is the production possibilities frontier for Poland. It shows that Poland is able to produce either 80 batches of apples or 20 batches of pumpkins using all of its available resources. Also suppose that Poland decides to produce at point A: 40 batches of apples and 10 batches of pumpkins. If Poland engages in international trade and trades 20 batches of apples for 8 batches of pumpkins with another country, it will be able to consume outside of its production possibilities frontier. How many batches of apples will will the country have at the end of the exchange? Apples (batches) 100 batches of apples 80 60 40 20 Provide your answer below: 5 A 10 15 20 Poland's Production Possibilities Frontier 25 30 Pumpkins (batches)

Below is the production possibilities frontier for Poland. It shows that Poland is able to produce either 80 batches of apples or 20 batches of pumpkins using all of its available resources. Also suppose that Poland decides to produce at point A: 40 batches of apples and 10 batches of pumpkins. If Poland engages in international trade and trades 20 batches of apples for 8 batches of pumpkins with another country, it will be able to consume outside of its production possibilities frontier. How many batches of apples will will the country have at the end of the exchange? Apples (batches) 100 batches of apples 80 60 40 20 Provide your answer below: 5 A 10 15 20 Poland's Production Possibilities Frontier 25 30 Pumpkins (batches)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that Ontario and Vermont each produce two goods, maple syrup (M) and hockey sticks (H). The quantities of each good that can be produced by each region in a day are given below: ONTARIO VERMONT GALLONS OF MAPLE SYRUP/DAY 400 1200 HOCKEY STICKS/DAY 200 300 Which region has an absolute advantage in maple syrup production? Which region has an absolute advantage in hockey stick production? Find the opportunity costs of each good for both Ontario and Vermont. c. Should Ontario and Vermont specialize and trade? Which good should be produced by Ontario? Vermont? What are the terms of trade? Use PPCs and CPCs to show that each would be better off through specialization and trade. Of what principle does this question provide an example?
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