The graph on the right shows Tanzania's production possibilties fronter for cashew nuts and 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 1) Using the point drawing tool, locate the point of production for Tanzania. Label this point B 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 2) Using the point drawing tool, locate the point that shows the amount of cashew nuts and mangoes that Tanzania consumes with trade Label this point 'C Carefully follow the instructions above and only draw the required objects Which of the following statements is true for Tazania with trade? OA. With trade, Tanzania is neither producing nor consuming on its PPF. OB. With trade, Tanzania is producing on its PPF but not consuming on its PPF OC. With trade, Tanzania is producing as well as consuming on its PPF OD. With trade, Tanzania is not producing on its PPF but is consuming on its PPF 10,000- 9.000 8,000- Cashew Nuts (n bushels) 27.000 6,000- 5.000 4.000 "A 3,000 2.000 1,000 500 Tanzania's PPF 1000 1500 2000 2500 3000 Mangoes on bushels)
The graph on the right shows Tanzania's production possibilties fronter for cashew nuts and 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 1) Using the point drawing tool, locate the point of production for Tanzania. Label this point B 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 2) Using the point drawing tool, locate the point that shows the amount of cashew nuts and mangoes that Tanzania consumes with trade Label this point 'C Carefully follow the instructions above and only draw the required objects Which of the following statements is true for Tazania with trade? OA. With trade, Tanzania is neither producing nor consuming on its PPF. OB. With trade, Tanzania is producing on its PPF but not consuming on its PPF OC. With trade, Tanzania is producing as well as consuming on its PPF OD. With trade, Tanzania is not producing on its PPF but is consuming on its PPF 10,000- 9.000 8,000- Cashew Nuts (n bushels) 27.000 6,000- 5.000 4.000 "A 3,000 2.000 1,000 500 Tanzania's PPF 1000 1500 2000 2500 3000 Mangoes on 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
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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am. 118.
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
1.) Using the point drawing tool, locate the point of production for Tanzania. Label this point 'B'.
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
2) Using the point drawing tool, locate the point that shows the amount of cashew nuts and mangoes that Tanzania consumes with trade.
Label this point 'C'
Carefully follow the instructions above and only draw the required objects
Which of the following statements is true for Tazania with trade?
O A. With trade, Tanzania is neither producing nor consuming on its PPF
O B. With trade, Tanzania is producing on its PPF but not consuming on its PPF
OC. With trade, Tanzania is producing as well as consuming on its PPF
OD. With trade, Tanzania is not producing on its PPF but is consuming on its PPF
Cashew Nuts (n bushels)
10,000-
Q
9,000
8,000-
7,000-
6,000-
5,000-
4,000-
3,000
2,000-
1,000
to
500
A
Tanzania's PPF
1,000 1,500 2.000 2,500 3,000
Mangoes (in bushels)
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