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Answer to Question #65509 in Microeconomics for Jessica
Question #65509
You are required to include a production possibility frontier for each country in your paper. As well, you will need to answer a few questions…
What would be the production possibility frontiers for Brazil and the United States?
Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.
Denote these points on each COUNTRY’s production possibility frontier.
Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?
What would be the production possibility frontiers for Brazil and the United States?
Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.
Denote these points on each COUNTRY’s production possibility frontier.
Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?
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What is the labor-intensive good? What is the Marginal Rate of Transformation impact? What is the labor-abundant country? What is the capital-abundant country? Could trade help reduce poverty in Brazil and other developing countries?
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