The Accompanying Hypothetical Production Possibilities Tables Are For New Zealand And Spain Each Country Can Produce Ap 1 (48.9 KiB) Viewed 32 times
The Accompanying Hypothetical Production Possibilities Tables Are For New Zealand And Spain Each Country Can Produce Ap 2 (46.83 KiB) Viewed 32 times
The Accompanying Hypothetical Production Possibilities Tables Are For New Zealand And Spain Each Country Can Produce Ap 3 (28.95 KiB) Viewed 32 times
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 (Millions of Bushels) Production Alternatives Product A B с D Apples 0 20 40 60 Plums 15 10 5 0 Spain's Production Possibilities Table (Millions of Bushels) Production Alternatives Product R s T U Apples 20 40 60 Plums 60 40 20 0 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.
Check my work C New Zealand Spain 80 Tools 140 Tools 120 (10, 140) PPC NZ ТОТ PPC SP TOT 60 100 80 Apples (millions of bushels) 40 Apples (millons of bushels) 60 40 20 20 0 o 5 10 15 20 25 0 30 35 40 10 20 30 40 50 60 70 80 Plums (millions of bushels) Plums (millions of bushels)
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).
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