9. Suppose the United States and Japan have the following production possibility tables: ( LO2-3)

a. Draw each country’s production possibility curve.

b. In what good does the United States have a comparative advantage?

c. Is there a possible trade that benefits both countries?

d. Demonstrate your answer graphically.

Transcribed Image Text:

Japan Bolts of Tons of Bolts of Cloth Wheat Cloth United States Tons of Wheat 1,000 0 500 0 800 100 400 200 600 200 300 400 400 300 200 600 200 400 100 800 0 500 0 1,000