The accompanying tables give production possibilities data for Gamma and Sigma. All data are in tons. Gamma's production possibilities     A B C D E Tea 120 90 60 30 0 Pots 0 30 60 90 120     Sigma's production possibilities     A B C D E Tea 40 30 20 10 0 Pots 0 30 60 90 120     On the basis of this information, Question 3 options:   Gamma should export both tea and pots to Sigma.   Sigma should export tea to Gamma, and Gamma should export pots to Sigma.   Gamma should export tea to Sigma, and Sigma should export pots to Gamma.   Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots.

Refer to Table 1-1  Which country has an absolute advantage in the production of bread?  Group of answer choices Derryland Whetonia

None

Candonia has a comparative advantage in the production of    , while Desonia has a comparative advantage in the production of    . Suppose that Candonia and Desonia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of

Question 2. Imagine the country of Zed, which has the following production possibilities curve: Tanks          Noodles          0            51     100            45                        200            38    300            30    400            21    500            11    600              0 a) What is the opportunity cost between tanks and noodles?  Is it constant?Graph the ppc. b) True, false, uncertain, and explain: “This economy should produce 30 noodles and 300 tanks because that is the most even distribution of  resources between the two goods.”

Consider the figure on the right. Between points b and c, the opportunity cost of tons of wheat (enter a positive whole number) is tons of steel (enter a positive whole number). C 800- Tons of steel per year 400 270 :60 70 Tons of wheat per year 100 N

Figure 3: Two Production Possibilities Frontiers Britain United States 100 30 90 200 Assume the world consists hypothetically of only two countries that can produce only two products, in the same period, with the same fixed amount of resources, with the same highest technologies available worldwide, and with the simplified assumption of producing "along" a linear production possibility frontier (PPF). Figure 3 provides the production possibilities frontiers between Textiles (T) and Soybeans (S) in the United States (A) and Britain (B). Referring to Figure 3, which of the following is true according to David Ricardo's Comparative Advantage Theory? Only the United States can benefit from engaging in free international trade with Britain. Neither Britain nor the United States can benefit from engaging in free international trade. Both Britain and the United States can benefit from engaging in free international trade. None of the above.

Graph the following productions possibility curve. Canada can make the following to commodities, syrup and cars. The opportunity cost is consistent, at all levels of production from first unit of syrup to the eighth; Canada can produce a maximum of 24 cars if it makes no syrup. Indicate a point on your graph that is impossible. Lastly, assume that as a result of technological advances Canada can increase its production of both syrup and cars draw a new curve.