Question

Cars (millions) co Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year The opportunity cost of producing a car in Canada is bushels of wheat, and the opportunity cost of producing a bushel of wheat in Canada is cars. Use the blue line (circle symbol) to draw Canada's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Canada can achieve without trade if it chooses to consume 10 million cars. 20 18 PPF 1e 14 Without Trade With Trade

Answer 1

preduced reducud Ahat can be no. Maxi bum 30 (10) 200 het Can be to hrat ne Maximum I5 3 00 a cax praducing epportuits cast The 20 20 whaat is ducing -1 cast 300 20 +'vihout trade Lars Aex td 300 200 uht wheat Canada w acept dual becaue ater tradu It ws able to Consume abore the PPE