plums. can produce apples and New Zealand's Production Possibilities Table (Millions of Bushels) polnts Production Alternatives Product B D. Apples Plums 20 40 60 15 10 eBook Spain's Production Possibilities Table (Millions of Bushels) Print Production Alternatives Product Apples Plums | 20 |40 60 60 40 20 References a. Plot the production possibilities data for each of the two countries separately. Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. Instructions: (1) Use the tools provided, 'PPC NZ' and 'PPC SP: (plot 4 points each) to draw the PPC curves. (2) Use the tool provided, TOT, in each diagram (plot 4 points each) to draw the trading possibilities lines for each nation. To earn full credit, you must correctly plot all points for each line. New Zealand Spain 80 120 60 PPC 100 80 40 60 20 40 20 10 15 20 25 30 35 40 10 20 30 40 50 60 70 80 Plums (millions of bushels) Plums (millions of bushels) Mc Graw Hill < Prey 14 of 15 Next > Referring to your graphs, answer the following: Instructions: Enter your answers as whole numbers. b. What is each country's cost ratio of producing plums and apples? New Zealand's cost of producing 1 plum(s). apple(s) Spain's cost of producing 1 plum(s). apple(s) Apples (millions of bushels) Apples (millons of bushels)
plums. can produce apples and New Zealand's Production Possibilities Table (Millions of Bushels) polnts Production Alternatives Product B D. Apples Plums 20 40 60 15 10 eBook Spain's Production Possibilities Table (Millions of Bushels) Print Production Alternatives Product Apples Plums | 20 |40 60 60 40 20 References a. Plot the production possibilities data for each of the two countries separately. Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. Instructions: (1) Use the tools provided, 'PPC NZ' and 'PPC SP: (plot 4 points each) to draw the PPC curves. (2) Use the tool provided, TOT, in each diagram (plot 4 points each) to draw the trading possibilities lines for each nation. To earn full credit, you must correctly plot all points for each line. New Zealand Spain 80 120 60 PPC 100 80 40 60 20 40 20 10 15 20 25 30 35 40 10 20 30 40 50 60 70 80 Plums (millions of bushels) Plums (millions of bushels) Mc Graw Hill < Prey 14 of 15 Next > Referring to your graphs, answer the following: Instructions: Enter your answers as whole numbers. b. What is each country's cost ratio of producing plums and apples? New Zealand's cost of producing 1 plum(s). apple(s) Spain's cost of producing 1 plum(s). apple(s) Apples (millions of bushels) Apples (millons of bushels)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:14
The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each country can produce apples and
plums.
New Zealand's Production Possibilities Table
polnts
(Millions of Bushels)
Production Alternatives
Product
D
Аpples
Plums
20
40
60
15
10
eBook
Spain's Production Possibilities Table
(Millions of Bushels)
Production Alternatives
Print
Product
R
T
Apples
Plums
20
40
60
60
40
20
References
a. Plot the production possibilities data for each of the two countries separately. Show the trading possibilities lines for each nation if
the actual terms of trade are 1 plum for 2 apples.
Instructions: (1) Use the tools provided, 'PPC NZ' and 'PPC SP (plot 4 points each) to draw the PPC curves. (2) Use the
tool provided, 'ToT, in each diagram (plot 4 points each) to draw the trading possibilities lines for each nation. To earn full credit, you
must correctly plot all points for each line.
New Zealand
Spain
80
Tools
140
Tools
120
60
PPC
NZ
ToT
PPC SP
To
100
80
40
60
20
40
20
10
15
20
25
30
35
40
10
20
30
40
50 60
70 80
Plums (millions of bushels)
Plums (millions of bushels)
Mc
Graw
Hill
< Prev
14 of 15
Next >
Referring to your graphs, answer the following:
Instructions: Enter your answers as whole numbers.
b. What is each country's cost ratio of producing plums and apples?
New Zealand's cost of producing 1 plum(s).
apple(s)
Spain's cost of producing 1 plum(s).
apple(s)
c. Which nation should specialize in which product?
(Click to select)
Suppose the optimum product mixes before specialization and trade were alternative B in New Zealand and alternative S in Spain.
d. What would be the gains from specialization and trade?
Gains =
apple(s) and
plum(s).
Apples (millions of bushels)
Apples (millons of bushels)
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