ch3 - If Uzbekistan and Azerbaijan each spends all its time...

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ch3 AP MacroEco Figure 3-9 Uzbekistan’s Production Possibilities Frontier Azerbaijan’s Production Possibilities Frontier 5 10 15 20 25 30 35 40 45 50 bolts 10 20 30 40 50 60 70 80 90 100 nails 5 10 15 20 25 30 35 40 45 50 bolts 10 20 30 40 50 60 70 80 90 100 nails 1. Refer to Figure 3-9. Uzbekistan has an absolute advantage in the production of 2. Refer to Figure 3-9 . If the production possibilities frontiers shown are each for two days of production, then which of the following combinations of bolts and nails could Uzbekistan and Azerbaijan together not make in a given 2-day production period? 3. Refer to Figure 3-9 . If Uzbekistan and Azerbaijan switch from each country dividing its time equally between the production of bolts and nails to each country spending all of its time producing the good in which it has a compar- ative advantage, then total production will increase by 4. Refer to Figure 3-9.
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Unformatted text preview: If Uzbekistan and Azerbaijan each spends all its time producing the good in which it has a comparative advantage and trade takes place at a price of 12 bolts for 36 nails, then 5. Refer to Figure 3-9. Without trade, Uzbekistan produced and consumed 12 bolts and 36 nails and Azerbaijan pro-duced and consumed 14 bolts and 24 nails. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 16 bolts for 38 nails. As a result, Uzbekistan gained A Q ch3 AP MacroEco Answer Section SHORT ANSWER 1. bolts and a comparative advantage in the production of bolts. 2. 46 bolts and 18 nails 3. 5 bolts and 10 nails. 4. both Uzbekistan and Azerbaijan will gain from this trade. 5. 2 bolts and 2 nails and Azerbaijan gained 2 bolts and 18 nails....
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ch3 - If Uzbekistan and Azerbaijan each spends all its time...

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