Assume that the United States and India enjoy constant opportunity costs and the production possibilities shown in the table. Peanuts (millions of pounds) Pecans(millions of pounds)

India 10 1

United States 5 10

a) Which country has an absolute advantage in pounds of peanuts?

b) Use the table to calculate the opportunity costs for each good and each country.

c) In which good would the United States specialize, and what range of terms of trade would be acceptable?

d) Draw a PPC for each country, placing pounds of peanuts on the y-axis and pecans on the x-axis.

e) Choose any acceptable terms of trade to plot and label two points on the PPC. Explain how both countries are able to consume beyond their individual PPCs.

Step-by-step explanation

Question 4 which was a foundation of the industrial revolution? a) large states held huge supplies of raw materials. b) coal replaced wood as the primary source of fuel. c) road infrastructure replaced waterways for transport. d) mercantilist policies drove down the price of goods. question 7 which was not a government response to the socialist challenges? a) establishing universal suffrage to all classes b) introducing medical insurance and pensions c) prohibiting underground employment for women d) restricting child labor for children under ten years old question 9 which was a cause of the boer war? a) movement and settlement of bantu peoples into afrikaner-populated states b) independence of northern afrikaner territories from british colonial authority c) evacuation of most afrikaner people out of south africa and back into europe d) british reconstitution of afrikaner-held territories into the union of south africa