Question
number 23 please
The Production Possibility Frontiers for Jackson and Tahoe) Look at the figure The Production Possibility Frontiers for Jackson and Tahoe. In autarky, Jackson produces and consumes 30 head of cattle and 80 bushels of wheat, while Tahoe produces and consumes 30 head of cattle and 60 bushels of wheat. With complete specialization according to comparative advantage, the two nations combined production of wheat will: remain constant. increase by 120 bushels. increase by 60 bushels. decrease by 60 bushels. (Figure: The Production Possibility Frontiers for Jackson and Tahoe) Look at the figure. The Production Possibility Frontiers for Jackson and Tahoe. In autarky, Jackson produces and consumes 30 head of cattle and 80 bushels of wheat, while Tahoe produces and consumes 30 head of cattle and 60 bushels of wheat. If both nations specialize completely in the good of their comparative advantage and
Explanation / Answer
Q 23)
In Autarky, the two nations produce:
Country Jackson: 30 Cattle, 30 wheat
Country Tahoe: 30 cattle, 60 wheat
Thus when there is comparative advantage the what production by two countries can increase by 120 bushels.
Thus the Answer is (c), increase by 10 bushels.
