M2. Every country can produce two goods-masks and wheat, using only their citizens' time. Consider the countries of Northumbria and Wessex. a) There is no trade. Northumbria produces more masks this year compared to last year because of a plague. Assume that the number of people in Northumbria and the time they spend in production stays the same during the plague. Claim: As Northumbria can increase mask production, it was not producing efficiently pre-plague. Agree, Disagree or It depends? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram. b) The plague is over. Northumbria trades with Wessex. With trade,

M2. Every country can produce two goods-masks and wheat, using only their citizens' time. Consider the countries of Northumbria and Wessex. a) There is no trade. Northumbria produces more masks this year compared to last year because of a plague. Assume that the number of people in Northumbria and the time they spend in production stays the same during the plague. Claim: As Northumbria can increase mask production, it was not producing efficiently pre-plague. Agree, Disagree or It depends? Explain your reasoning. A diagram is not an explanation. Your explanation needs to be sufficient without a diagram. b) The plague is over. Northumbria trades with Wessex. With trade,

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 4PA

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