QUESTION 28You are the Minister of Trade for a small island country in the South Pacific with the following monthly production possibilitiescurve:500450-400350300+25020015010050↑lemonade500450400350300250200150100You are negotiating a deal with a neighboring island that has the following monthly PPC:50 100 150 200 250 300 350 400 pias↑lemonade50+50 100 150 200 250 300 350 400Refer to the graphs above. Both countries specialize exclusively in the product for which they have a comparative advantage.You have agreed to sell them 160 bottles of lemonade in exchange for 100 pizzas. After the trade, your country has a total ofbottles of lemonade andpizzas.A. 400; 100.B. 400; 200.O C. 160; 200.++pizzasD. 240; 100.

The opportunity costs for a good or service will be the loss of other alternatives or oprions when…

You are the Minister of Trade for a small island country in the South Pacific with the following monthly production possibilities curve: 500 450 400 350 300 250- 200 150 100 50 500 450 lemonade You are negotiating a deal with a neighboring island that has the following monthly PPC: 400+ 350 300 250 200 150- 100+ 50 50 100 150 200 250 300 350 400 pias lemonade + 50 100 150 200 250 300 350 400 pias Refer to the graphs above. Both countries specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell them 160 bottles of lemonade in exchange for 100 pizzas. After the trade, your country has a total of bottles of lemonade and pizzas. A. 400; 100. B. 400; 200. OC. 160; 200. D.240; 100.

You are the Minister of Trade for a small island country in the South Pacific with the following monthly production possibilities curve: 500 450 400 350 300 250- 200 150 100 50 500 450 lemonade You are negotiating a deal with a neighboring island that has the following monthly PPC: 400+ 350 300 250 200 150- 100+ 50 50 100 150 200 250 300 350 400 pias lemonade + 50 100 150 200 250 300 350 400 pias Refer to the graphs above. Both countries specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell them 160 bottles of lemonade in exchange for 100 pizzas. After the trade, your country has a total of bottles of lemonade and pizzas. A. 400; 100. B. 400; 200. OC. 160; 200. D.240; 100.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 10RQ: What factors does Paul Krugman identity that supported expanding international trade in the 1800s?

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