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Ily assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn. i) Complete the table below: Albania Belize Corn Вeets Corn Beets luction luction before trade (B) luction with specialization (C) sumption with trade (D) nally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (label e final points of consumption on the graph for each country and label it as point A: final point of consumption). en finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Y серt*

Ily assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn. i) Complete the table below: Albania Belize Corn Вeets Corn Beets luction luction before trade (B) luction with specialization (C) sumption with trade (D) nally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (label e final points of consumption on the graph for each country and label it as point A: final point of consumption). en finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Y серt*

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can part I and J be further explained/answered? I've already asked the question and recieved an answer but am unsure if the answer is corret.

Finally assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn. i) Complete the table below: Albania Belize Corn Вeets Corn Вeets Production Production before trade (B) Production with specialization (C) Consumption with trade (D) j) Finally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (label these final points of consumption on the graph for each country and label it as point A: final point of consumption). *When finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Y intercept*
Transcribed Image Text:Finally assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn. i) Complete the table below: Albania Belize Corn Вeets Corn Вeets Production Production before trade (B) Production with specialization (C) Consumption with trade (D) j) Finally graph the effects of trade in the PPF's for both countries and confirm if they were able to produce above their frontiers (label these final points of consumption on the graph for each country and label it as point A: final point of consumption). *When finding these final new points make sure to keep in mind that the numbers on the line are prorated based n the X and Y intercept*
Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly produce two of the following products: corn and beets. Our hopes are that we will be able to improve trade liberalization and encourage each one to work together in order to improve the number of resources and goods each one provides to their population. Here are their production levels for each product per worker/month (assume each country has a workforce for 15 workers): Bushels Corn (Y-axis) Вeets (X-аxis) Albania 40 20 Belize 20 4 a) Calculate and graph the Production possibilities frontiers for both countries. b) Assume that both countries currently prefer equal amounts of corn and beet for their production & consumption levels within their country, clearly label this point and call it point B: production/consumption before trade. c) Calculate and state the number of workers that would be required in order to produce points B for both countries. d) Complete the table below showing the different levels of opportunity cost Albania Belize Corn Вets Corn Вeets Production Opportunity Cost e) Who has absolute advantage and comparative advantage for each item produced? f) Applying the idea behind specialization, who should focus on which product and why? (Calculate specialization for each item and country, call his point C: Specialization) Albania Belize Corn Вeets Corn Вeets Production with specialization g) Who should export or import corn and beets? Given that both economies have now agreed to trade, clearly label the point where each one specializes in one level of production for each item (call this point D: consumption with trade). Now let's focus on the terms of trade between each country, after completing the table above and the 2 countries permanent representatives discussing the 3 terms of trade, 4 options were presented: Option 1: Option 2: Option 3: Option 4: 1 beet = 6 units of corn 1.5 beet = 3.5 units of corn& 1 beet = 4 units of corn 1 beet = 4 units of corn 1 corn = 0.4 units of beets 1 corn = 0.52 units of beets 1 corn = 0.4 units of beets 1 corn =0.10 units of beets & & & h) Which option is the most acceptable for this situation? why
Transcribed Image Text:Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly produce two of the following products: corn and beets. Our hopes are that we will be able to improve trade liberalization and encourage each one to work together in order to improve the number of resources and goods each one provides to their population. Here are their production levels for each product per worker/month (assume each country has a workforce for 15 workers): Bushels Corn (Y-axis) Вeets (X-аxis) Albania 40 20 Belize 20 4 a) Calculate and graph the Production possibilities frontiers for both countries. b) Assume that both countries currently prefer equal amounts of corn and beet for their production & consumption levels within their country, clearly label this point and call it point B: production/consumption before trade. c) Calculate and state the number of workers that would be required in order to produce points B for both countries. d) Complete the table below showing the different levels of opportunity cost Albania Belize Corn Вets Corn Вeets Production Opportunity Cost e) Who has absolute advantage and comparative advantage for each item produced? f) Applying the idea behind specialization, who should focus on which product and why? (Calculate specialization for each item and country, call his point C: Specialization) Albania Belize Corn Вeets Corn Вeets Production with specialization g) Who should export or import corn and beets? Given that both economies have now agreed to trade, clearly label the point where each one specializes in one level of production for each item (call this point D: consumption with trade). Now let's focus on the terms of trade between each country, after completing the table above and the 2 countries permanent representatives discussing the 3 terms of trade, 4 options were presented: Option 1: Option 2: Option 3: Option 4: 1 beet = 6 units of corn 1.5 beet = 3.5 units of corn& 1 beet = 4 units of corn 1 beet = 4 units of corn 1 corn = 0.4 units of beets 1 corn = 0.52 units of beets 1 corn = 0.4 units of beets 1 corn =0.10 units of beets & & & h) Which option is the most acceptable for this situation? why
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