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Answer questions (19) - (21) based on the following diagram: Good Y (Car] specialization 150 Crade price Inc PPF Slope- -2 100 200 This diagram
Answer questions (19) - (21) based on the following diagram: Good Y (Car] specialization 150 Crade price Inc PPF Slope- -2 100 200 This diagram indicates a hypothetical country's production possibility frontier and the world trade equilibrium price of Cheese (or Car). Suppose that this country specializes in car production (good I') , as indicated above, under free trade. 19. To this country, the opportunity cost of exporting 50 cars is equal to: A) 10 units of cheese B) 15 units of cheese C) 20 units of cheese D 25 units of cheese 20. To this country, the gain from exporting 50 cars is equal to: A) 10 units of cheese B) 15 units of cheese 0) 20 units of cheese (D) 25 units of cheese
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