Assume that the United States and India enjoy constant opportunity costs and the production possibilities shown in the table. [show ALL parts of the math from beginning to end.]

Peanuts (millions of pounds) Pecans(millions of pounds)

India 10 1

United States 5 10

a) Which country has an absolute advantage in pounds of peanuts? [calculate your math step by step / write the equations]

b) Use the table to calculate the opportunity costs for each good and each country. [calculate your math step by step / write the equations]

c) In which good would the United States specialize, and what range of terms of trade would be acceptable?

d) Draw a PPC for each country, placing pounds of peanuts on the y-axis and pecans on the x-axis.

e) Choose any acceptable terms of trade to plot and label two points on the PPC. Explain how both countries are able to consume beyond their individual PPCs.