Country A and Country B produce the same two products, backp…

Country A and Country B produce the same two products, backpacks and sweaters. Country A can produce a maximum of 60 backpacks or 40 sweaters, while Country B can produce a maximum of 40 backpacks or 20 sweaters.  Which country has the absolute advantage in producing backpacks? Explain using numbers.  What is the opportunity cost to produce a sweater in terms of backpacks in Country A? Which country, if either, has a comparative advantage in producing sweaters? Explain.  Internationally, if 1 sweater is traded for 1.75 backpacks, who will benefit from trading: Country A only, Country B only, both countries, or neither country? Explain.  Assume there is international trade. Can a country produce beyond its production possibilities curve (PPC)? Assume there is international trade. Can a country consume beyond its PPC?

Country A has a balance of $500,000 in its current account,…

Country A has a balance of $500,000 in its current account, $100,000 in its capital account, and $500,000 in its financial account. If workers from India sent $300,000 back to their families in India while residents in the United States bought $600,000 worth of goods from abroad in the same year, how do these transactions affect the Balance of Payment Accounts?