Now, based on part (C), total production of food is ---- units and total production of equipment is ----units. E. The gains as a result of specialization are ----more units of equipment produced.

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Chapter1: Making Economics Decisions
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D. Now, based on part (C), total production of food is ---- units and total production of equipment is ----units. E. The gains as a result of specialization are ----more units of equipment produced.
Below is the data for the maximum production of the only two products for the countries of Oz and Zas.
32 food units 16 equipment units
16 food units or 24 equipment units
Oz:
Zas:
a. If each country is self-sufficient, with no trade between them, and each uses one-half of their resources to produce each of the two
products, what is the output in each country. Fill in the table below.
Country
Oz
Zas
Output of food Output of equipment
units
units
Country
Oz
Zas
16
8
b. Based on part (a), total production of food is 24 units and total production of equipment is
c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country?
Fill in the table below.
8
12
Output of food Output of equipment
units
units
32
0
0
24
d. Now, based on part (c), total production of food is
e. The gains as a result of specialization are
20 units.
units and total production of equipment is
on of
more units of food produced and
units.
more units of equipment produced.
Transcribed Image Text:Below is the data for the maximum production of the only two products for the countries of Oz and Zas. 32 food units 16 equipment units 16 food units or 24 equipment units Oz: Zas: a. If each country is self-sufficient, with no trade between them, and each uses one-half of their resources to produce each of the two products, what is the output in each country. Fill in the table below. Country Oz Zas Output of food Output of equipment units units Country Oz Zas 16 8 b. Based on part (a), total production of food is 24 units and total production of equipment is c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country? Fill in the table below. 8 12 Output of food Output of equipment units units 32 0 0 24 d. Now, based on part (c), total production of food is e. The gains as a result of specialization are 20 units. units and total production of equipment is on of more units of food produced and units. more units of equipment produced.
Expert Solution
Step 1

Given 

Maximum production of two goods for the countries of Oz and Zas

  Food Equipment
Oz 32 16
Zas 16 24

We have to solve part D as the first three subparts are already solved correctly. 

From subpart C, country Oz is specialized and produces 32 units of food and 0 units of equipment. Country Zas specialize its production in equipment and produce 24 units of equipment and 0 units of food. 

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