Macroeconomics 9th Edition by David Colander

Exercise 23

Suppose the United States and Japan have the following production possibility tables:
Japan
United States
Bolts of Cloth
Tons of Wheat
Bolts of Cloth
Tons of Wheat
1,000
0
500
0
800
100
400
200
600
200
300
400
400
300
200
600
200
400
100
800
0
500
0
1,000
a. Draw each country's production possibility curve.
b. In whatgooddoesthe United States have a comparative advantage
c. Is there a possible trade that benefits both countries
d. Draw their combinedproduction possibility curve.04