The production possibilities frontiers in the figure to the right show how many bananas and coconuts you(Y)
Question:
The production possibilities frontiers in the figure to the right show how many bananas and coconuts you(Y) and your neighbor(N) can consume without trade. Suppose you are initially consuming 5 bananas and 4 coconuts and your neighbor is initially consuming 10 bananas and 4 coconuts.
Now, suppose you and your neighbor specialize by each only producing the good for which you have a comparative advantage.
You give your neighbor half of your production for half of what he produces.(Enter all responses asintegers.)
If you trade with yourneighbor, then you will have _______additionalcoconut(s) after the trade and _______additionalbanana(s).
- At the sametime, your neighbor will be able to consume ________ additionalbanana(s) and will be ____A. better off or B. worse off___ as a result of trade
Auditing Cases An Active Learning Approach
ISBN: 9781266566899
2nd Edition
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt