Cashews (thousands of pounds)

Table 4: Production and Consumption with no Trade

Download 235.78 Kb.
Size235.78 Kb.
1   2   3   4
Table 4: Production and Consumption with no Trade

Digital Camera Output

Wheat Output



South Korea


  1. If the two countries do not trade and consume whatever they produce, identify the current production and consumption point for each country on their respective production possibilities frontiers. Label China's consumption point "C" and South Korea's consumption point, "K."

  2. Suppose the two countries specialize and trade. Who should produce digital cameras and who should produce wheat? Explain your answer.

  3. Complete Table 5 below to show each country's output with specialization.

Download 235.78 Kb.

Share with your friends:
1   2   3   4

The database is protected by copyright © 2022
send message

    Main page