Question

Two countries each produce only pork and apples. The U.S. can produce either 20 thousand pounds...

Two countries each produce only pork and apples. The U.S. can produce either 20 thousand pounds of pork or 40 thousand pounds of apples per year. Canada can produce either 25 thousand pounds of pork or 100 thousand pounds of apples per year. Each country wants to consume 7 thousand pounds of pork per year and as many pounds of apples as they can produce with the remaining resources.

In this case (with no specialization and trade) the U.S. will consume ________ pounds of apples and Canada will consume _______ pounds of apples. Round to the nearest whole number.

Homework Answers

Answer #1

Suppose there are 20 thousand resources in US, resources left after producing 7 thousand units of pork is 13. 1 unit of resource is two times more productive for apples.

Production of apples in US= 13*2= 26 thousands

Now, suppose there are 25 thousand resources in Canada, resources left after producing 7 thousand units of pork is 18 thousand. 1 unit of resource is 4 times more productive for apples.

Production of apples in Canada= 18*4= 72 thousand

Blank 1- 26 thousands

Blank 2- 72 thousands

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