1
answer
0
watching
127
views
28 Sep 2019
The following are production possibilities tables for Germany andCanada. Note that we are assuming that opportunity costs remainconstant along the production possibilities frontier, and that eachcountry produces only these two products. Use the information inthe tables to answer subsequent questions.
Germany's Production Possibilities Table
Production Alternatives
Product A B C D
Autos 0 40 80 120
Computers 60 40 20 0
Canada's Production Possibilities Table
Production Alternatives
Product A' B' C' Dâ
Autos 0 60 120 180
Computers 120 80 40 0
Since Canada can produce more of either product than Germany can,is there any reason for Canada and Germany to engage in trade?Explain.
If they trade, which country should specialize in which product andwhy?
If the Germans are consuming and producing 40 autos and 40computers before trade and the Canadians are producing andconsuming 60 autos and 80 computers before trade, what are thepotential gains from trade (if any) in terms of additionalproduction of autos and computers for both countriescombined?
The following are production possibilities tables for Germany andCanada. Note that we are assuming that opportunity costs remainconstant along the production possibilities frontier, and that eachcountry produces only these two products. Use the information inthe tables to answer subsequent questions.
Germany's Production Possibilities Table
Production Alternatives
Product A B C D
Autos 0 40 80 120
Computers 60 40 20 0
Canada's Production Possibilities Table
Production Alternatives
Product A' B' C' Dâ
Autos 0 60 120 180
Computers 120 80 40 0
Since Canada can produce more of either product than Germany can,is there any reason for Canada and Germany to engage in trade?Explain.
If they trade, which country should specialize in which product andwhy?
If the Germans are consuming and producing 40 autos and 40computers before trade and the Canadians are producing andconsuming 60 autos and 80 computers before trade, what are thepotential gains from trade (if any) in terms of additionalproduction of autos and computers for both countriescombined?
Germany's Production Possibilities Table
Production Alternatives
Product A B C D
Autos 0 40 80 120
Computers 60 40 20 0
Canada's Production Possibilities Table
Production Alternatives
Product A' B' C' Dâ
Autos 0 60 120 180
Computers 120 80 40 0
Since Canada can produce more of either product than Germany can,is there any reason for Canada and Germany to engage in trade?Explain.
If they trade, which country should specialize in which product andwhy?
If the Germans are consuming and producing 40 autos and 40computers before trade and the Canadians are producing andconsuming 60 autos and 80 computers before trade, what are thepotential gains from trade (if any) in terms of additionalproduction of autos and computers for both countriescombined?
manhokwe tawandaLv10
29 Sep 2019
