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Worksheet for my econ class , anyone willing to help will be greatly appreciated. S and T Practice The island nations of Caraway and Mocha

Worksheet for my econ class , anyone willing to help will be greatly appreciated.

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S and T Practice The island nations of Caraway and Mocha have decided to work together through specialization and trade. Suppose that one Mochan in one day can produce either three radios or twelve bushels of wheat; one Carawan in one day can produce two radios or four bushels of wheat. Ratio Tables 1. The opportunity cost of producing one radio on Mocha is Mocha Caraway bushels of wheat. Radios Wheat Radios | Wheat 2. The opportunity cost of producing one radio on Caraway is bushels of wheat. 3. The opportunity cost of producing a wheat on Mocha is of a radio. 4. The opportunity cost of producing a wheat on Caraway is of a radio. 5. Based on numbers 1-4, should make radios and should make wheat. 6. Caraway will gain from trading if it sells a radio for more than bushels of wheat for one radio; Mocha will gain from trading if it pays less than bushels of wheat for a radio. is so ear o she ran 7. Therefore, the terms of trade is a range of bushels of wheat for one radio. never she farther wood. 8. Graph the production possibilities for the two islands below using the schedules below. d Riding Production Point Radios Wheat Production Point Radios Wheat e though A 300 0 W 200 0 can sym B 200 400 X 100 200 ng off o C 100 800 Y 50 300 deeper at preve D 1200 Z 0 400 goal. He diverted Mocha Caraway 3.5 3.5 3.0 3.0 2.5 2.5 Radi 2.0 Radi 2.0

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