a.Draw the production possibilities frontier (PPF) for Figistan and Blah in the graphs below assuming the two countries can switch between producing fruits and timber at a constant rate.

Figistan'sPPFBlah's PPF

b.Which country has an absolute advantage in fruit production?

Blah has the absolute advantage over Figistan.

c.Which country has an absolute advantage in timber production?

Figistan has the absolute advantage over Blah.

d.What is the opportunity cost of producing one basket of fruits in Figistan?

e.What is the opportunity cost of producing one basket of fruits in Blah?

f.What is the opportunity cost of producing one board feet of timber in Figistan?

For figstan, the cost of 1 board feet is 2 baskets of fruit. This is because 10/5= 2. And for Blah, it's 10/3, which is 3 baskets of fruit.

g.What is the opportunity cost of producing one board feet of timber in Blah?

h.Which country has a comparative advantage in fruit production? (i.e., which country's opportunity cost of producing fruit is lower?)

i.Which country has a comparative advantage in timber production? (i.e., which country's opportunity cost of producing timber is lower?)

j.If the countries trade with each other trade, which product will each country export?

Figistan exports ___________

Blah exports _____________