The tables give production possibilities data for two countries, Alpha and Beta, which have populations of equal size Alpha's production possibilities D 40 20 510 A Fish (Tons) 8060 Chips (Tons 0 15 20 Beta's production possibilities A DE 180 120 60 Fish (Tons) 240 Chips (Tons 10 20 30 40 Answer the following question: 1. Graph the production possibilities curves for both countries 2. Which country has an Absolute Advantage (A.A) in the production of Fish/Chips? 3. Based on A.A. principle, is trade possible between Alpha and Beta? 4. Which country has a Comparative Advantage in the production of Fish/ Chips? 5. Based on C.A. principle, is trade possible between Alpha and Beta? 6. What is the Opportunity cost of producing Fish in both countries? Determine the Terms of Trade domestically 7. What is the domestic opportunity cost of producing Chips in both countries? Determine the Terms of Trade domestically. 8. Which Country should specialize in the Production of Fish/Chips? 9. Show the PPF at the point of complete specialization for both countries. What is range of the Term of Trade that trade is possible at. Suppose that international TOT is 1 Chip: 5 Fishes. And suppose that before specialization and trade, Alpha chose production alternative C and Beta chose production alternative B. Compute the Gain from trade of both countries after specialization and trade. Graph the PPF after specialization and trade