If Tom and Abby specialize and trade 15 balls for 1 racket, what are the gains from

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If Tom and Abby specialize and trade 15 balls for 1 racket, what are the gains from trade?


Figure 3.3 (on below) shows Tom€™s production possibilities and Figure 3.4 (on the next page) shows Abby€™s production possibilities. Tom uses all his resources and produces 2 rackets and 20 balls an hour. Abby uses all her resources and produces 2 rackets and 40 balls an hour.

FIGURE 3.3 FIGURE 3.4 Chapter Checkpoint Study Plan Problem 7 Chapter Checkpoint Study Plan Problem 7 Balls (per hour) B

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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