Question
3. (10 points) France and Poland each have one worker whose monthly linear Production Possibility Frontier indicates the following production possibilities: Poland France Computers (C)
3. (10 points) France and Poland each have one worker whose monthly linear Production Possibility
Frontier indicates the following production possibilities:
Poland France
Computers (C) 24 6
Grain (G) 4 3
a) (1pt) France's opportunity cost of G in terms of units of C equals ______ ?
b) (1pt) Poland's opportunity cost of G in terms of units of C equals ______ ?
For the following parts, please complete the questions by filling in the blank, and responding to remainder
of the question:
c) (2 pt) Poland's comparative advantage is in ______ because:
d) (3pt) If France and Poland decide to trade, _________ will be the exporter of G while ______ will be
the importer because:
e) (3 pts) If the economies choose to trade, the world relative price of goods must be ________ in order
for trade to be mutually beneficial, because:
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