Consider the two hypothetical nations of Greenburg and Fireton. Suppose they both produce only two goods, robot vacuum cleaners and plastic army men. Each country faces a trade-off when producing the two goods. The following graph displays the respective production possibilities frontiers (PPF) for Greenburg and Fireton. 50 60 449 45 Greenburg's PPF W 35 D + Terms of Trade PLASTIC ARMY MEN (Thousands) 10 15 20 2 25 30 40 5 xc M+ Fireton's PPF 0 05 10 15 20 25 30 35 40 ROBOT VACUUM CLEANERS (Thousands) 45 50 ? If the two nations operate in autarky, which of the black points (plus symbol) are attainable for Fireton? Check all that apply. Point A Point B Point C Point D Suppose the two nations decide to trade with each other at a rate of one robot vacuum cleaner per plastic army man (1:1). On the previous graph, use the green line (triangle symbol) to represent the terms of trade to help you find your answer to the following question. You will not be graded on where you place the line on the graph. Which of the grey points (star symbol) that were not attainable by either country in autarky are attainable once the countries agree to trade, holding all else constant? Check all that apply. Point W Point X Point Y Point Z Suppose Fireton and Greenburg engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will not waste any resources.) Greenburg will robot vacuum cleaners. Suppose Fireto export enburg engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will not waste any Import Greenburg will robot vacuum cleaners.
Consider the two hypothetical nations of Greenburg and Fireton. Suppose they both produce only two goods, robot vacuum cleaners and plastic army men. Each country faces a trade-off when producing the two goods. The following graph displays the respective production possibilities frontiers (PPF) for Greenburg and Fireton. 50 60 449 45 Greenburg's PPF W 35 D + Terms of Trade PLASTIC ARMY MEN (Thousands) 10 15 20 2 25 30 40 5 xc M+ Fireton's PPF 0 05 10 15 20 25 30 35 40 ROBOT VACUUM CLEANERS (Thousands) 45 50 ? If the two nations operate in autarky, which of the black points (plus symbol) are attainable for Fireton? Check all that apply. Point A Point B Point C Point D Suppose the two nations decide to trade with each other at a rate of one robot vacuum cleaner per plastic army man (1:1). On the previous graph, use the green line (triangle symbol) to represent the terms of trade to help you find your answer to the following question. You will not be graded on where you place the line on the graph. Which of the grey points (star symbol) that were not attainable by either country in autarky are attainable once the countries agree to trade, holding all else constant? Check all that apply. Point W Point X Point Y Point Z Suppose Fireton and Greenburg engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will not waste any resources.) Greenburg will robot vacuum cleaners. Suppose Fireto export enburg engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will not waste any Import Greenburg will robot vacuum cleaners.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter18: Trading With Other Nations
Section: Chapter Questions
Problem 10AA
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Transcribed Image Text:Consider the two hypothetical nations of Greenburg and Fireton. Suppose they both produce only two goods, robot vacuum cleaners and plastic army
men. Each country faces a trade-off when producing the two goods. The following graph displays the respective production possibilities frontiers (PPF)
for Greenburg and Fireton.
50
60
449
45
Greenburg's PPF
W
35
D
+
Terms of Trade
PLASTIC ARMY MEN (Thousands)
10
15
20
2
25
30
40
5
xc
M+
Fireton's PPF
0
05 10
15
20
25
30 35 40
ROBOT VACUUM CLEANERS (Thousands)
45 50
?
Transcribed Image Text:If the two nations operate in autarky, which of the black points (plus symbol) are attainable for Fireton? Check all that apply.
Point A
Point B
Point C
Point D
Suppose the two nations decide to trade with each other at a rate of one robot vacuum cleaner per plastic army man (1:1).
On the previous graph, use the green line (triangle symbol) to represent the terms of trade to help you find your answer to the following question. You
will not be graded on where you place the line on the graph.
Which of the grey points (star symbol) that were not attainable by either country in autarky are attainable once the countries agree to trade, holding
all else constant? Check all that apply.
Point W
Point X
Point Y
Point Z
Suppose Fireton and Greenburg engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will
not waste any resources.)
Greenburg will
robot vacuum cleaners.
Suppose Fireto export enburg engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will
not waste any
Import
Greenburg will
robot vacuum cleaners.
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