The graph on the right shows Tanzania's production possibilities frontier for cashew nuts and mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels of mangoes, and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly splits its labor hours between cashews and mangoes and produces and consumes at point A. Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely specializes in cashew nuts. Locate the point of production for Tanzania. The point of production for Tanzania includes bushels of mangoes and bushels of cashew nuts. (Enter your responses as whole numbers.) Suppose Tanzania keeps 5,000 bushels of cashew nuts and exports the remaining 3,000 bushels. The terms of trade are 1 bushel of mangoes for 2 bushels of cashew nuts. Locate the point that shows the amount of cashew nuts and mangoes that Tanzania consumes with trade. After trading, the point of consumption for Tanzania includes bushels of mangoes and bushels of cashew nuts. (Enter your responses as whole numbers.) Which of the following statements is true for Tazania with trade? OA. With trade, Tanzania is producing as well as consuming on its PPF. OB. With trade, Tanzania is neither producing nor consuming on its PPF. OC. With trade, Tanzania is not producing on its PPF but is consuming on its PPF. OD. With trade, Tanzania is producing on its PPF but not consuming on its PPF. Cashew Nuts (in bushels) 10,000- 9,000- 8,000 7,000 6,000- 5,000- 4,000+ 3,000- 2,000- 1,000 0+ 0 500 A Tanzania's PPF 1,000 1,500 2,000 2,500 3,000 Mangoes (in bushels)
The graph on the right shows Tanzania's production possibilities frontier for cashew nuts and mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels of mangoes, and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly splits its labor hours between cashews and mangoes and produces and consumes at point A. Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely specializes in cashew nuts. Locate the point of production for Tanzania. The point of production for Tanzania includes bushels of mangoes and bushels of cashew nuts. (Enter your responses as whole numbers.) Suppose Tanzania keeps 5,000 bushels of cashew nuts and exports the remaining 3,000 bushels. The terms of trade are 1 bushel of mangoes for 2 bushels of cashew nuts. Locate the point that shows the amount of cashew nuts and mangoes that Tanzania consumes with trade. After trading, the point of consumption for Tanzania includes bushels of mangoes and bushels of cashew nuts. (Enter your responses as whole numbers.) Which of the following statements is true for Tazania with trade? OA. With trade, Tanzania is producing as well as consuming on its PPF. OB. With trade, Tanzania is neither producing nor consuming on its PPF. OC. With trade, Tanzania is not producing on its PPF but is consuming on its PPF. OD. With trade, Tanzania is producing on its PPF but not consuming on its PPF. Cashew Nuts (in bushels) 10,000- 9,000- 8,000 7,000 6,000- 5,000- 4,000+ 3,000- 2,000- 1,000 0+ 0 500 A Tanzania's PPF 1,000 1,500 2,000 2,500 3,000 Mangoes (in bushels)
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
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Transcribed Image Text:The graph on the right shows Tanzania's production possibilities frontier for cashew nuts and
mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels
of mangoes, and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly splits its
labor hours between cashews and mangoes and produces and consumes at point A.
Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of
cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely
specializes in cashew nuts. Locate the point of production for Tanzania.
bushels of mangoes and bushels of cashew
The point of production for Tanzania includes
nuts. (Enter your responses as whole numbers.)
Suppose Tanzania keeps 5,000 bushels of cashew nuts and exports the remaining 3,000 bushels.
The terms of trade are 1 bushel of mangoes for 2 bushels of cashew nuts. Locate the point that
shows the amount of cashew nuts and mangoes that Tanzania consumes with trade.
After trading, the point of consumption for Tanzania includes bushels of mangoes and
bushels of cashew nuts. (Enter your responses as whole numbers.)
Which of the following statements is true for Tazania with trade?
OA. With trade, Tanzania is producing as well as consuming on its PPF.
OB. With trade, Tanzania is neither producing nor consuming on its PPF.
OC. With trade, Tanzania is not producing on its PPF but is consuming on its PPF.
O D. With trade, Tanzania is producing on its PPF but not consuming on its PPF.
Cashew Nuts (in bushels)
10,000
9,000-
8,000
7,000-
6,000-
5.000-
4,000-
3,000-
2,000
1,000-
04
0
500
A
Tanzania's PPF
1,000 1,500 2,000 2,500 3,000
Mangoes (in bushels)
Q
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