What would be the production possibility frontiers

Reference no: EM13764688

Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil CAN produce 100,000 units of clothing per year and 50,000 cans of soda. The United States CAN produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper.

Complete the following:

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?

Additional questions to consider include:

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?

Reference no: EM13764688

Questions Cloud

The development of law in america : When circumstances change within society, then many times laws must be developed or revised to assist in preventing and solving problems. For this week's Business Law Research, develop a 1-2 page summary in Microsoft Word discussing the developmen..

Identify the four basic financial statements : Identify the four basic financial statements. Describe the purpose of each of the four financial statements.

Radius implementation : Suppose you are a Systems Administrator, and you have been tasked with implementing RADIUS to support authentication, authorization, and accounting in your organizations Windows network environment.

Review skills and abilities required in that occupation : review the knowledge, skills, and abilities (KSAs) required in that occupation. You can research occupations based upon 1, 2, or all 3 of your Holland Code by going to "Advanced Search" and "Interests."

What would be the production possibility frontiers : What would be the production possibility frontiers for Brazil and the United States and without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.

Provide the best arguments both the prosecutor and defendant : Decide if the evidence should be admitted, and provide the best arguments both the prosecutor and defendant can make to win the motion

Determine and discuss the role that corporate culture : Determine which moral philosophy is most applicable to an understanding of the banking industry meltdown. Explain your rationale.

Net realizable value of accounts receivable : If MA Company has net credit sales of $800,00 and estimates that 1% will be uncollectake, what is the net realizable value of accounts receivable as reported on the balance sheet?

Define and compare probable cause and reasonable suspicion : Define and compare probable cause and reasonable suspicion and Define the doctrine of judicial review and explain its significance in the American legal system

User Account

All Pages