EXTRA POINT Q1 In a single year, Germany can raise 100 tons…

EXTRA POINT Q1 In a single year, Germany can raise 100 tons of wheat or produce 2,000 boxes of daisies. In the same growing season, France can raise 50 tons of wheat or produce 750 boxes of daisies. When the two countries begin trading wheat for daisies, the price of daisies in France can be expected to:

EXTRA POINT Q3   The table describes the production of two g…

EXTRA POINT Q3   The table describes the production of two goods, computers and phones, in Canada and the United States. Each country has a linear production possibility frontier with respect to its production of the two goods. The numbers in each column represent the total number of units each country could produce if it used all of its resources to produce the good. If each country specializes in the good in which it has the comparative advantage, then the price of 6 phones in terms of computer will be: Computers Phones Canada 50 100 United States 25 75