To produce 1 unit of y b has to use up 1 unit of f

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Unformatted text preview: To produce 1 unit of Y, B has to use up 1 unit of f. Represent the production possibility frontier for A and B. Which country has an absolute advantage in producing X? Which country has an absolute advantage in producing Y? Which country has a comparative advantage in producing X? Which country has a comparative advantage in producing Y? Suppose A and B like to consume as much of X as of Y. What is the optimal productionconsumption choice for A and B in autarchy? What is the optimal production choice for A and B with trade? Is there only one consumption choice that is efficient with trade? Is trade efficient? Why? X 1 Y...
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This note was uploaded on 04/13/2013 for the course ECON 1101 taught by Professor Someguy during the Spring '07 term at Minnesota.

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