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As you did for Shenandoah, place a black point (plus symbol) on the following graph to indicate Rainier's consumption after trade. PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF || || True 6 False Rainier 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 True or False: Without engaging in international trade, Shenandoah and Rainier would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) Consumption After Trade

As you did for Shenandoah, place a black point (plus symbol) on the following graph to indicate Rainier's consumption after trade. PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF || || True 6 False Rainier 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 True or False: Without engaging in international trade, Shenandoah and Rainier would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) Consumption After Trade

Essentials of Economics (MindTap Course List)
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 4PA
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4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Rainier. Both countries produce almonds and pistachios, each initially (l.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of pistachios, as indicated by the grey stars marked with the letter A. PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF Shenandoah A 0 6 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 ? PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Rainier A 18 12 24 30 36 ALMONDS (Millions of pounds) 42 48 ?
Transcribed Image Text:4. Specialization and trade When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Rainier. Both countries produce almonds and pistachios, each initially (l.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of pistachios, as indicated by the grey stars marked with the letter A. PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF Shenandoah A 0 6 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 ? PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Rainier A 18 12 24 30 36 ALMONDS (Millions of pounds) 42 48 ?
As you did for Shenandoah, place a black point (plus symbol) on the following graph to indicate Rainier's consumption after trade. PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 038 True 6 False A 12 Rainier 18 24 30 ALMONDS (Millions of pounds) 36 42 48 + True or False: Without engaging in international trade, Shenandoah and Rainier would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) Consumption After Trade
Transcribed Image Text:As you did for Shenandoah, place a black point (plus symbol) on the following graph to indicate Rainier's consumption after trade. PISTACHIOS (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 038 True 6 False A 12 Rainier 18 24 30 ALMONDS (Millions of pounds) 36 42 48 + True or False: Without engaging in international trade, Shenandoah and Rainier would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) Consumption After Trade
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