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1 which country has an absolute advantage in Commodity X ? 2 Which country has an absolute advantage in Commodity Y ? 3 Explain your

1 which country has an absolute advantage in Commodity X?
2 Which country has an absolute advantage in Commodity Y?
3 Explain your answers to Questions 1and 2
4 based on the production possibilities curves for Country A and country B,compute the domestic cost ratios for Commodities X and Y
Contry A 1X=.....Y and 1Y=.....X
Contry B 1X=......Y and 1Y......X
5 which country has a comparative advantage in Commodity X?
6 Which country has a comparative advantage in Commodity Y?
7 Explain your answers to questions 5and 6
8 if the international terms of trade is 1 y=1.75X and country A is at point P while country B is at point Q show the impact on consumption if specialization and trade is allowed to take place.
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