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Answer the next questions on the basis of the following possibility data for Gamma and Sigma, All data are in tons. Gamma Production Possibilities: Sigma

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Answer the next questions on the basis of the following possibility data for Gamma and Sigma, All data are in tons. Gamma Production Possibilities: Sigma production Possibilities: i) On the basis of the above information, each country should export which commodity and why? {1 marks} ii) What are the limits of trade between Gamma and Sigma? {1 marks} ii) Assume that before specialization and trade Gamma and Sigma both chose production possibility "".C Now if each specializes according to comparative advantage, what will be the gains from specialization and trade? {3 marks} Explain the factors causing unemployment for a middle income country like Kenya. {5 marks}

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