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August 31, 2014

Homework Help: Economics

Posted by Anonymous on Monday, February 7, 2011 at 9:04pm.

ARBOC ARBEZ
WHEAT COFFEE WHEAT COFFEE
120 0 120 0
0 30 0 20

8. The terms of trade are 2 units of wheat per unit of coffee,
Arboc should produce which good?
Arbez should produce which good?
9. The terms of trade are 5 units of wheat per unit of coffee,
Arboc should produce which good?
Arbez should produce which good?
10. The terms of trade are 6 units of wheat per unit of coffee. Which country could not gain from trade?

can anybody just tell how we are suppose to do them thankyou..

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