Glacier has a comparative advantage in the production of a comparative advantage in the production of Congaree specialize in the production of the goods in which each After specialization, the two countries can produce a total of and million pounds of basil. Suppose that Glacier and Congaree agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 16 million pounds of corn for 16 million pounds of basil. This ratio of goods is known as the price of trade between Glacier and Congaree. The following graph shows the same PPF for Glacier as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Glacier's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. BASIL (Millions of pounds) 64 56 48 40 32 24 16 8 0 0 PPF 8 16 I 1 Glacier 24 32 40 CORN (Millions of pounds) 48 56 Congaree 64 while Congaree has . Suppose that Glacier and has a comparative advantage. million pounds of corn ++ Consumption After Trade (?) The following graph shows the same PPF for Congaree as before, as well as its initial consumption at point A. As you did for Glacier, place a black point (plus symbol) on the following graph to indicate Congaree's consumption after trade. (?)
Glacier has a comparative advantage in the production of a comparative advantage in the production of Congaree specialize in the production of the goods in which each After specialization, the two countries can produce a total of and million pounds of basil. Suppose that Glacier and Congaree agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 16 million pounds of corn for 16 million pounds of basil. This ratio of goods is known as the price of trade between Glacier and Congaree. The following graph shows the same PPF for Glacier as before, as well as its initial consumption at point A. Place a black point (plus symbol) on the graph to indicate Glacier's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. BASIL (Millions of pounds) 64 56 48 40 32 24 16 8 0 0 PPF 8 16 I 1 Glacier 24 32 40 CORN (Millions of pounds) 48 56 Congaree 64 while Congaree has . Suppose that Glacier and has a comparative advantage. million pounds of corn ++ Consumption After Trade (?) The following graph shows the same PPF for Congaree as before, as well as its initial consumption at point A. As you did for Glacier, place a black point (plus symbol) on the following graph to indicate Congaree's consumption after trade. (?)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Glacier has a comparative advantage in the production of
a comparative advantage in the production of
Congaree specialize in the production of the goods in which each
After specialization, the two countries can produce a total of
and million pounds of basil.
Suppose that Glacier and Congaree agree to trade. Each country focuses its resources on
producing only the good in which it has a comparative advantage. The countries decide to
exchange 16 million pounds of corn for 16 million pounds of basil. This ratio of goods is known as
the price of trade between Glacier and Congaree.
The following graph shows the same PPF for Glacier as before, as well as its initial consumption at
point A. Place a black point (plus symbol) on the graph to indicate Glacier's consumption after
trade.
Note: Dashed drop lines will automatically extend to both axes.
BASIL (Millions of pounds)
64
56
BASIL (Millions of pounds)
48
40
32
24
16
8
0
64
56
40
0
48 PPF
24
8
PPF
0
8
0
16
The following graph shows the same PPF for Congaree as before, as well as its initial consumption
at point A.
8
As you did for Glacier, place a black point (plus symbol) on the following graph to indicate
Congaree's consumption after trade.
I
1
O True
O False
Glacier
16
24
40
32
CORN (Millions of pounds)
48
Congaree
24
32
40
CORN (Millions of pounds)
56
48
64
56
++
Consumption After Trade
64
while Congaree has
. Suppose that Glacier and
has a comparative advantage.
million pounds of corn
**
(?)
Consumption After Trade
(?)
True or False: Without engaging in international trade, Glacier and Congaree would have been able
to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you
previously entered on this page.)
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