he following are hypothetical production possibilities tables for Japan and the United States
economics
Description
1. The following are hypothetical production possibilities tables for Japan and the United States
1.1. Plot Japan's production possibilities curve by plotting at least 2 points on the curve.
1.2. Plot the United States' production possibilities curve by plotting at least 2 points on the
curve on the graph above.
1.3. What is each country's cost ratio of producing Oranges and Bananas?
1.4. Which nation should specialize in which product?
1.5. Plot Japan's trading possibilities curve (by plotting at least 2 points on the curve) if the actual terms of the trade are 1 orange for 3 bananas.
1.6. Plot the United States' trading possibilities curve (by plotting at least 2 points on the curve) if the actual terms of the trade are 1 orange for 3 bananas.
1.7. Suppose that the optimum product mixes before specialization and trade were C in Japan
and B in the United States. What are the gains from specialization and trade?
