Posted by **Kyle** on Monday, May 3, 2010 at 8:24pm.

no idea what to do guys, little help please

11. Answer the next three questions on the basis of the following production possibilities data for Francia and Galacia. All data are in tons.

Francia production possibilities:

A B C D E

Soup 60 45 30 15 0

Nuts 0 15 30 45 60

Galacia production possibilities:

A B C D E

Soup 20 15 10 5 0

Nuts 0 15 30 45 60

(a) If trade occurs between Francia and Galacia, which nation should export what product? Why? 2 points

(b) What are the limits of the terms of trade between Francia and Galacia? 1 point

(c) Assume that prior to specialization and trade, Francia and Galacia chose production possibility “C.” Now each specializes according to comparative advantage. What will be the resulting gains from trade? Explain your answer. 2 points

## Answer this Question

## Related Questions

- economics - Answer the next three questions on the basis of the following ...
- economic - 6. The table below is a set of hypothetical production possibilities ...
- economic - 6. The table below is a set of hypothetical production possibilities ...
- economic - The table below is a set of hypothetical production possibilities ...
- Economics - I have created an accurate graph on excel and I believe the answers ...
- Economics - I picked C as the answer to this question but I am not sure? The ...
- economic - Suppose, unfortunately , your mathematics and economics professors ...
- economic - 10. Suppose, unfortunately , your mathematics and economics ...
- Sttistics/Please Help - What is the value of the Y-intercept of the least-...
- math - 10. For questions 10-13, use the following data: 13 29 41 60 89 14 26 53...

More Related Questions