Information for questions 14-20 There are two countries, Hom…

Information for questions 14-20 There are two countries, Home and Foreign. Labor is the only factor of production. There are two goods, X and Y. The following table shows the output of each good per hour of labor, in the two countries. Home has 100 units of labor, Foreign has 500 units of labor.   Home Foreign Good X 1 4 Good Y 3 24 Putting quantity of good X on the horizontal axis, and quantity of good Y on the vertical axis, calculate the horizontal intercept of the Foreign Production Possibilities Curve. Enter a whole or decimal number, as appropriate. Enter 0 if the answer cannot be obtained with the information given. Only exact answer accepted. 

Information for questions 21-25 The graphs below show the p…

Information for questions 21-25 The graphs below show the production possibilities curves (PPC) for the U.S. and Canada, which both produce cars and wheat. Initially suppose that the two countries trade only with each other. Careful: the figures are not on the same scale, don’t use the scale for any answers. Instead use your reasoning and calculations.     Based on the graphs above, which of the following is true?

Information for questions 21-25 The graphs below show the p…

Information for questions 21-25 The graphs below show the production possibilities curves (PPC) for the U.S. and Canada, which both produce cars and wheat. Initially suppose that the two countries trade only with each other. Careful: the figures are not on the same scale, don’t use the scale for any answers. Instead use your reasoning and calculations.     Complete the sentence: When the U.S. and Canada trade with each other, and no other country, the U.S. specializes in __________ and Canada specializes in ________ . A country specializes in a good when it only produces that good, and produces 0 units of the other good.  

Information for questions 20-24 The figure below depicts th…

Information for questions 20-24 The figure below depicts the production possibilities curve (PPC) of a country. It also depicts the consumption possibilities curve (CPC) when the country is engaged in trade with one other country. Point C is this country’s consumption when that trade occurs. Calculate how much this country trades with the other country in good x when the two countries engage in free trade. Enter a whole number only. Enter a positive number if this country exports good x, and a negative number if it imports it. Enter 0 if the answer cannot be obtained with the information given. Since this is a graphical question, approximate answers (within 10 of the exact answer) are accepted. Hint: consider how much the country produces and consumes of this good.