10. (L0 4) Below are the data for the maximum production of the only two products for the countries of Oz and Zas.

Oz 40 food units OR 20 equipment units Zas 20 food units OR 30 equipment units

a) If each country is self-sufficient, with no trade between them, and each uses one half of its resources to produce each of the two products, what is the output in each country?

Oz food units and equipment units Zas food units and equipment units

b) What is the total production of each product?

food units and equipment units

c) If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country?

Oz food units and equipment units Zas food units and equipment units

d) Now what is the total production of each product?

food units and equipment units

e) What is the term economists use to explain your answers when comparing answers

(b) and (d)?

It is the .