Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly producetwo of the following products: corn and beets. Our hopes are that we will be able to improve trade liberalization and encourage eachone to work together in order to improve the number of resources and goods each one provides to their population. Here are theirproduction levels for each product per worker/month (assume each country has a workforce for 15 workers):BushelsCorn (Y-аxis)Вets (X-аxis)Albania4020Belize204Calculate 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 withintheir 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.a)d) Complete the table below showing the different levels of opportunity costAlbaniaBelizeCornВeetsCornВeetsProductionOpportunityCoste)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 eachitem and country, call his point C: Specialization)AlbaniaBelizeCornВeetsCornВeetsProduction with specializationg) 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 foreach item (call this point D: consumption with trade). Now let's focus on the terms of trade between each country, after completingthe table above and the 2 countries permanent representatives discussing the 3 terms of trade, 4 options were presented:1 beet = 6 units of cornOption 1:Option 2:Option 3:Option 4:&1 corn = 0.4 units of beets1.5 beet = 3.5 units of corn&1 corn = 0.52 units of beets1 beet = 4 units of corn1 beet = 4 units of corn1 corn = 0.4 units of beets1 corn =0.10 units of beets&&h) Which option is the most acceptable for this situation? why Finally assume that the countries, after much deliberation, decided to trade 25 beets for 100 bushels of corn.i) Complete the table below:AlbaniaBelizeCornВeetsCornВeetsProductionProduction 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 (labelthese 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 Yintercept*

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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) Bets (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.

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) Bets (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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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