n opportunity cost from pursuing any of these activities? Why or why not?
 
 
Apples (millions of bushels per year) 4 W D N 0 2 4 5 Oranges (millions of bushels per year)

 

The figure above shows a nation's production possibilities frontier for apples and oranges.a. What combination of goods is represented by point A?
What combination of goods is represented by point B?
Which point represents an unattainable combination of goods?
The movement from point C to point D results in a free lunch. What is the free lunch?
The United States has an absolute advantage in producing sugar over all of the other sugar producing countries. Does this fact mean that we should not import any sugar from the other countries?
 
China's production in 1 hour Pakistan's production in 1 hour Cloth 8 Cloth 4 Cheese 16 Cheese 12

The table above shows the amounts of cloth and cheese that China and Pakistan can produce in an hour. Which country has the comparative advantage in cloth and which country has the comparative advantage in cheese?
How are the roles of the household different in the goods market and in the factor markets?

Transcribed Image Text:

Apples (millions of bushels per year) 4 A B 3 C D 2 0 2 3 4 5 Oranges (millions of bushels per year) Apples (millions of bushels per year) 4 A B 3 C D 2 0 2 3 4 5 Oranges (millions of bushels per year)