Need Answer with an explanation, please!

1. Consider the following production possibilities schedules for the Swiss and German economies.

Switzerland Germany

Clocks (millions) Chocolates (millions of tons) Clocks (millions) Chocolates (millions of tons)

10 0 8 0

0 4 0 12

-+ A') Read aloud Draw V Highlight V 2. Suppose that the Swiss and German economies are linked by international trade at a world price pWorld = 1 and Pchoc of Pclocks 1 pWorld = 1. Using the information from question 1, answer the following: a. Under trade, would Switzerland produce clocks or chocolates? Explain why briefly. b. Under trade, would Germany produce clocks or chocolates? Explain why briefly. c. In the diagram of le, plot the trading possibilities line for Switzerland. Indicate the production point under trade with the letter 'T" d. In the diagram of 1h, plot the trading possibilities line for Germany. Indicate the production point under trade with the letter 'H' e. Under trade, Switzerland exports 4 clocks to Germany. How many clocks would Switzerland have left to consume? How many chocolates would Switzerland import in return? Indicate the consumption point under trade with the letter 'U' f. Under trade, Germany exports 4 chocolates to Switzerland. How many chocolates would Germany is left to consume? How many clocks would Germany import in return? Indicate the consumption point under trade with the letter 'I