PRACTICE EXERCI ES 1. Consider the following production possibilities frontiers for the economies of Rome and Carthage. Trade ImmII_ -.'- A. What are the assumptions of the production possibilities table concerning resources used to make wine and wheat? Which country has an absolute advantage in the production of wine and grain? What is the opportunity cost of one barrel of wine in Rome? What is the opportunity cost of one ton of grain in Rome? What is the opportunity cost of one barrel of wine in Carthage? What is the opportunity cost of one ton of grain in Carthage? Does a comparative advantage exist? Explain Will trade occur between Rome and Carthage? If so, what are the possibilities of trade? . Assume that trade occurs between Rome and Carthage. Given the terms of trade is with one barrel of wine, explain the exchange between Rome and Carthage. 0mm 9 OP