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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![QUESTION 28
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
↑lemonade
500
450
400
350
300
250
200
150
100
You are negotiating a deal with a neighboring island that has the following monthly PPC:
50 100 150 200 250 300 350 400 pias
↑lemonade
50+
50 100 150 200 250 300 350 400
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.
O C. 160; 200.
++
pizzas
D. 240; 100.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6df4de3a-cd77-4e46-a546-b353c47d70ee%2Fd227f5d3-90df-4dc0-8d27-b2b65de5ecb2%2Fzt3ga5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 28
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
↑lemonade
500
450
400
350
300
250
200
150
100
You are negotiating a deal with a neighboring island that has the following monthly PPC:
50 100 150 200 250 300 350 400 pias
↑lemonade
50+
50 100 150 200 250 300 350 400
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.
O C. 160; 200.
++
pizzas
D. 240; 100.
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