Question 3 (5 points) Production Before Trade Product Saudi Arabia Japan Phones (Qty) 20 90 Oil (Barrels) 100 0 15 Production & Consumption Before Trade 120 100 80 Samsung Phones (Qty) 60 Csaudi (10,50) 40 20 CJapan (40,10) O 0 10 20 30 40 50 60 70 80 90 100 110 Oil (Barrels) -Saudi Arabia Japan For the two countries depicted in the graphic above, answer the following questions: 1. How much could the first "blue" country produce of each product, if it through all of its efforts into the production of only one of the two products it could produce? 2. How much could the second "orange" country produce of each product, if it produced only that product? 3. What is the opportunity cost in each country of giving up the vertical product to get the horizontal product? 4. If the current consumption bundles in these two countries were shown at the points C in this graphic, how much of each good is produced in the world before trade? 5. What would the available product produced in the world be if these two countries traded with each other? 6. Would each of these countries be better off in the presence of trade? If so, by how much? If not, why not? 7. Should these countries be allowed to trade? Paragr... + v