The following figure illustrates the production possibilities for two countries, Russia and Canada. Assume that initially the two countries do not trade. Russia produces 40 cars and 5 tons of paper. Canada produces 16 cars and 42 tons of paper. You can assume cars and paper are measured in thousands of units.
Suppose the two countries decide to completely specialize and trade. If they decide to trade 18 cars in exchange for 6 tons of paper, then after trade, Russia will be able to consume______ more cars and______more paper. Canada will be able to consume _____more cars and _____more paper.

Question

The following figure illustrates the production possibilities for two countries, Russia and Canada. Assume that initially the two countries do not trade. Russia produces 40 cars and 5 tons of paper. Canada produces 16 cars and 42 tons of paper. You can assume cars and paper are measured in thousands of units.
  Suppose the two countries decide to completely specialize and trade. If they decide to trade 18 cars in exchange for 6 tons of paper, then after trade, Russia will be able to consume______ more cars and______more paper. Canada will be able to consume _____more cars and _____more paper.

Quizplus · Accepted Answer

The Answer of The following figure illustrates the production possibilities for two countries, Russia and Canada. Assume that initially the two countries do not trade. Russia produces 40 cars and 5 tons of paper. Canada produces 16 cars and 42 tons of paper. You can assume cars and paper are measured in thousands of units.
  Suppose the two countries decide to completely specialize and trade. If they decide to trade 18 cars in exchange for 6 tons of paper, then after trade, Russia will be able to consume______ more cars and______more paper. Canada will be able to consume _____more cars and _____more paper.

The Following Figure Illustrates the Production Possibilities for Two Countries