Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) toindicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars.Cars (milions)2018161412109864210050Japan100 150 200 250Wheat (milions of bushels)300 350 400PPFWithout TradeNow suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.accept the deal the United States proposes.With TradeOn the should ph, use the grey point (star symbol) to indicate the consumption bundle Japan can achieve with trade if it continues to consume 15millionshould not 4. Problems and Applications Q4Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year.bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan isThe opportunity cost of producing a car in Japan is 2011/10 cars.Use the blue line (circle symbol) to draw Japan's pr5indicate the consumption bundle Japan can achieve 10Cars (millions)201816141210842001/105020possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) totrade if it chooses to consume 15 million cars.100 150 200 250 300 350 400Wheat (millions of bushels)PPF+Without TradeWith TradeNow suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.

Opportunity cost is the cost of producing one good in terms of another. Opportunity cost shows the…

Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is The opportunity cost of producing a car in Japan is 20 1/10 cars. 5 Use the blue line (circle symbol) to draw Japan's pr indicate the consumption bundle Japan can achieve Cars (millions) 222 20 18 16 14 12 10 8 6 4 50 1/10 100 150 200 250 Wheat (millions of bushels) 10 20 possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to trade if it chooses to consume 15 million cars. 300 350 400 PPF + Without Trade With Trade Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.

Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is The opportunity cost of producing a car in Japan is 20 1/10 cars. 5 Use the blue line (circle symbol) to draw Japan's pr indicate the consumption bundle Japan can achieve Cars (millions) 222 20 18 16 14 12 10 8 6 4 50 1/10 100 150 200 250 Wheat (millions of bushels) 10 20 possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to trade if it chooses to consume 15 million cars. 300 350 400 PPF + Without Trade With Trade Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Use the blue line (circle symbol) to draw Japan's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to
indicate the consumption bundle Japan can achieve without trade if it chooses to consume 15 million cars.
Cars (milions)
20
18
16
14
12
10
9
8
6
4
2
10
0
50
Japan
100 150 200 250
Wheat (milions of bushels)
300 350 400
PPF
Without Trade
Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.
accept the deal the United States proposes.
With Trade
On the should ph, use the grey point (star symbol) to indicate the consumption bundle Japan can achieve with trade if it continues to consume 15
million
should not

4. Problems and Applications Q4
Suppose that there are 10 million workers in Japan and that each of these workers can produce either 2 cars or 20 bushels of wheat in a year.
bushels of wheat, and the opportunity cost of producing a bushel of wheat in Japan is
The opportunity cost of producing a car in Japan is 201
1/10 cars.
Use the blue line (circle symbol) to draw Japan's pr
5
indicate the consumption bundle Japan can achieve 10
Cars (millions)
20
18
16
14
12
10
8
4
2
0
0
1/10
50
20
possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to
trade if it chooses to consume 15 million cars.
100 150 200 250 300 350 400
Wheat (millions of bushels)
PPF
+
Without Trade
With Trade
Now suppose that the United States offers to buy 5 million cars from Japan in exchange for 150 million bushels of wheat.

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