1)say countries #1 and #2 are not trading with each other. say country #1 '5 rate of product transformation is 3. country #2's rate of product transformation is 1. would economists argue that these t'vvo countries should change production and engage in trade with each other? 2)say country #l's rate of product transformation is 3. country #2'5 rate is 1. what would happen to the total quantity of good 2 produced by the two countries if country #1 decreases production of good 1 by I unit while country #2 increases its production of good 1 by 1 unit? 3)suppose policy A will only affect the welfare of three people. individual S I 's WTP for A is $3,000; individual #25 WTP for A is $1,000; individual #3'3 WTAC for A is $1,200. If policy A is adopted, will everyone be better off than if it's not adopted? 4)OK, only 3 individuals are affected by A. for A is $1,000; individual #3' at the same time, imposed tax individual $l's WTP for A is $3,000; individual #2'3 WTP s WTAC for A is $1,200. what would happen if we adopted policy A and es of $800 on individuals #1 and #2, and paid $1,600 to individual #3? 5)individual Sl's WTP for A is $3,000; individual #2' s WTR for A is $1,000; individual #3'5 WTAC forA is $1,200. no one else is affected by this policy. does it pass the benet-cost test? 6)when a policy passes the benefit~cost test, the economist recommends adopting it. what is the logic behind the recommendation? 7)in the above questions, individuals have different WTP's and WTAC's. is that possible? why or why not (what determines a person's WTP, WTAC). here we have an individual with a WTP and a WTAC for policy x. is that possible? why or why not