a) Country Utopia produces 40 widgets and 20 gadgets. Draw the PPF and explain. (1) b) What change can shift the PPF outward or to the right for Country Utopia? Please draw the shift and explain. (1) 2. "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of ALL goods." Please explain if the statement is true or false. Explain. (1) 3. Draw the following curve when, x = 1, x = 2, x = 3, x = 4, x = 5 (2.5) a) y = 2 + 5x b) Calculate the slope. Is the slope positive or negative? 4. Draw the following curve when, x = 1, x = 2, x = 3, x = 4, x = 5 (2.5) a) y = 16 2x b) Calculate the slope. Is the slope positive or negative? can you draw all the slope and curves?

a) Country Utopia produces 40 widgets and 20 gadgets. Draw the PPF and explain. (1) b) What change can shift the PPF outward or to the right for Country Utopia? Please draw the shift and explain. (1) 2. "Two countries can achieve gains from trade even if one of the countries has an absolute advantage in the production of ALL goods." Please explain if the statement is true or false. Explain. (1) 3. Draw the following curve when, x = 1, x = 2, x = 3, x = 4, x = 5 (2.5) a) y = 2 + 5x b) Calculate the slope. Is the slope positive or negative? 4. Draw the following curve when, x = 1, x = 2, x = 3, x = 4, x = 5 (2.5) a) y = 16 2x b) Calculate the slope. Is the slope positive or negative? can you draw all the slope and curves?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 6PA

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