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Here are production possibilities tables for the United State and Japan. Currently The countries are not trading an the U.S. and Japan are producing at
Here are production possibilities tables for the United State and Japan. Currently The countries are not trading an the U.S. and Japan are producing at points B and B*. United States Wheat Rice A 0 20 B 40 10 C 80 0 Japan Wheat Rice A* 0 70 B* 12 35 C* 24 0 1. What is the world production of wheat? 2. What is the world production of rice? Now the countries agree to trade. 3 What production letter should the U.S. move to? 4 What production letter should Japan move to? 5. What is the new world production of wheat? 6. What is the new world production of rice? 7. What is the range of wheat that the U.S. could trade to Japan and still have more wheat to consume than before trade? 8. What is the range of wheat that Japan could accept from the United States and have more wheat than before trade. 9. Give one possible trade in terms of wheat for rice that would leave both countries better off
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