Advanced Placement (AP), 21.11.2020 23:00 oliup567
Please help. Assume that the United States and India enjoy constant opportunity costs and the production possibilities shown in the table.
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.
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Please help. Assume that the United States and India enjoy constant opportunity costs and the produc...
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