Question: Question 1 [12 points] The data below shows the total production (in millions) of the only two goods produced in England and Mexico. England; 40

Question 1 [12 points]

The data below shows the total production (in millions) of the only two goods produced in England and Mexico.

England; 40 jackets or 8 games

Mexico; 10 jackets or 20 games

Calculate an answer for each of the following questions.

Note:Round your answers to two decimal places.

a)What is the opportunity cost of each product in England?

Jackets :0Games

Games :0Jackets

b)What is the opportunity cost of each product in Mexico?

Jackets :0Games

Games :0Jackets

c)In which country is each product cheaper?

Jackets :(select one)

Games :(select one)

d)If, before trade, each country was devoting half its resources to producing each product, what is the total amount that they were producing?

Jackets :0(in millions)

Games :0(in millions)

e)If the two countries were to specialize in producing the product they do best, what would be the total amount they could produce?

Jackets :0(in millions)

Games :0(in millions)

f)What are the total gains as a result of specialization?

Jackets :0(in millions)

Games :0(in millions)

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