Exhibit 21-1 Production possibilities curves In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Pada should specialize in the production of:

Question

Exhibit 21-1  Production possibilities curves  In Exhibit 21-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Pada should specialize in the production of:

Quizplus · Accepted Answer

According to the production possibilities curves presented, Pada has a comparative advantage in producing corn, while Nabia has a comparative advantage in producing wheat. Therefore, Pada should specialize in producing corn and trade with Nabia to obtain wheat, leading to mutual gains from trade.

Exhibit 21-1 Production Possibilities Curves in Exhibit 21-1, the Production