[ECON 102] - Final Exam Guide - Ultimate 41 pages long Study Guide!
1
ECON 102 Full Course Notes
Verified Note
1 document
Document Summary
Bowed out (law of increasing marginal opportunity costs. Points outside the ppc are not attainable. 25 acres of wheat * 6 wheat/acre = 150 wheat. 75 acres of cotton * 2 cotton/acre = 150 cotton. 75 acres of wheat * 2 wheat/acre = 150 wheat. 25 acres of cotton * 6 cotton/acre = 150 cotton. 100 acres of wheat * 6 wheat/acre = 600 wheat. 100 acres of cotton * 6 cotton/acre = 600 cotton. Each country gets 300 units of each good. Absolute advantage: one country has an absolute advantage in the production of a good over another country if it can produce a given amount of that good using fewer resources than the other country can. Assume each country has 100 acres of land. Each country would like an equal amount of wheat and cotton. 50 acres wheat * 6 wheat/acre = 300 wheat. 50 acres cotton * 6 cotton/acre = 300 cotton.
