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Please someone answer quick it's due 11:20 The accompanying hypothetical production possibilities tables are for Germany and USA. Each country can produce cars and trucks.

Please someone answer quick it's due 11:20

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The accompanying hypothetical production possibilities tables are for Germany and USA. Each country can produce cars and trucks. Germany's production possibilities A B C D Cars 50 100 150 Trucks 60 40 20 0 US' production possibilities K L M N Cars 0 30 60 90 Trucks 90 60 30 0 a) (5 points) Which nation should specialize in which product? Explain briefly why. b) (5 points) What are the limits of the terms of trade? The terms of trade are 1 truck for 1.5 cars. c) (7.5) Draw for US the production possibilities line and the trading possibilities line. d) (7.5) Suppose the optimum product mixes before specialization and trade were alternative C in Germany and alternative L in USA. Suppose that 20 trucks are exchanged for 30 cars. What would be the gains from specialization and trade

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