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Part F please 1. The productivity in production of each good is shown below: Uganda Tanzania Productivity Ounces of tea per labor Yards of cloth

Part F please

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1. The productivity in production of each good is shown below: Uganda Tanzania Productivity Ounces of tea per labor Yards of cloth per labor a. What is the pre-trade (relative) price of cloth (in terms of tea) in Uganda? What is the pre-trade price of cloth in Tanzania? b. Draw the production possibilities curve (ppc) for Uganda and Tanzania assuming each country has 50 units of labor. c. If trade opens between Uganda and Tanzania, which good should Uganda specialize in and why? Which good should Tanzania specialize in and why? Clearly mark the production points for Uganda and Tanzania on the graphs showing the ppc's, if they specialize in this manner. d. Which of the following is the possible international equilibrium price of cloth after trade opens and why: 2 ounces/yard, .4 ounces/yard, 1.0 ounces/yard, or 2.5 ounces/yard. e. Suppose, both Uganda and Tanzania specialize in accordance with their comparative advantage. Using the plausible international price of cloth from (b) above, show on graphs, the trade lines that shows the points (combination of goods) at which Uganda and Tanzania can consume after trade has opened. Show your work deriving the trade lines. How do these consumption points differ from the points at which they could consume in absence of trade? Explain economic significance of the difference. f. After opening of trade, how many ounces of tea can Uganda consume if it wants to consume 75 yards of cloth? (15+10+10+10+15+10)

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