Module 8 Chp 35 Problem 6.

Module 8 Chp 35 - Therefore Canada will be willing to produce all beef with 0 computers and Japan will be willing to produc Limits of terms of

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6. What are the limits of the terms of trade? Specifically, when is Canada willing to trade with Japan, and when is Japan willing to trade with Canada? Amount of Beef or Computers Produced by One Worker in a Day Canada Japan Beef 6 5 Computers 2 4 Canada Japan Without trade: Beef Computers Beef  Computers 6 2 5 4 With trade: Canada Japan Beef Computers Beef Computers PPF 6 2 5 4 PPF 9 1 PPF 12 0 0 8 With trade and specialization, the total production is 12 beefs and 8 computers rather than 11 beefs and
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Unformatted text preview: Therefore, Canada will be willing to produce all beef with 0 computers and Japan will be willing to produc Limits of terms of trade - Points of trade Canada Japan Beef Computers Beef Computers Without trade: production & Consumption 6 2 5 4 With trade: production & consumption 6 3 6 5 6 4 6 4 Total Beef Computers 11 6 roduce good that they specialize) Total Beef Computers 12 8 6 computers without trade. ce all computers with 0 beef. s (Option 1) (Option 2)...
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This note was uploaded on 08/04/2011 for the course ECN 601 taught by Professor Professor during the Spring '10 term at Grand Canyon.

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Module 8 Chp 35 - Therefore Canada will be willing to produce all beef with 0 computers and Japan will be willing to produc Limits of terms of

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