Consider the following information about production of wine and food in England and France: $$ \begin{array} { r }
{ \text { England } } \quad\quad\quad\quad\quad\quad\quad { \text { France } } \quad\quad\quad\quad\quad\quad\quad\
\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Percentage } \
\text { of resources } \
\text { devoted to food }
\end{array} & \begin{array} { c }
\text { Food } \
\text { Produced } \
\text { (tons) }
\end{array} & \begin{array} { c }
\text { Wine } \
\text { Produced } \
\text { (gallons) }
\end{array} & \begin{array} { c }
\text { Food } \
\text { Produced } \
\text { (tons) }
\end{array} & \begin{array} { c }
\text { Wine } \
\text { Produced } \
\text { (gallons) }
\end{array} \
\hline 100 & 500 & 0 & 50 & 0 \
\hline 80 & 400 & 10 & 40 & 100 \
\hline 60 & 300 & 20 & 30 & 200 \
\hline 40 & 200 & 30 & 20 & 300 \
\hline 20 & 100 & 40 & 10 & 400 \
\hline 0 & 0 & 50 & 0 & 500 \
\hline
\end{array}\end{array}$$ (a)Using the grids below,plot each country's production possibilities curve. (b)Which country has a comparative advantage in the production of food? Of wine? Explain.
(c)Suppose that currently England and France are not trading with each other.England is producing (and consuming)200 tons of food and 30 gallons of wine.France is producing (and consuming)30 tons of food and 200 gallons of wine.As an international trader,how could you take advantage of this situation and make the big bucks?

Question

Consider the following information about production of wine and food in England and France: $$ \begin{array} { r } 
{ \text { England } } \quad\quad\quad\quad\quad\quad\quad    { \text { France } } \quad\quad\quad\quad\quad\quad\quad\
 \begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Percentage } \
\text { of resources } \
\text { devoted to food }
\end{array} & \begin{array} { c } 
\text { Food } \
\text { Produced } \
\text { (tons) }
\end{array} & \begin{array} { c } 
\text { Wine } \
\text { Produced } \
\text { (gallons) }
\end{array} & \begin{array} { c } 
\text { Food } \
\text { Produced } \
\text { (tons) }
\end{array} & \begin{array} { c } 
\text { Wine } \
\text { Produced } \
\text { (gallons) }
\end{array} \
\hline 100 & 500 & 0 & 50 & 0 \
\hline 80 & 400 & 10 & 40 & 100 \
\hline 60 & 300 & 20 & 30 & 200 \
\hline 40 & 200 & 30 & 20 & 300 \
\hline 20 & 100 & 40 & 10 & 400 \
\hline 0 & 0 & 50 & 0 & 500 \
\hline
\end{array}\end{array}$$ (a)Using the grids below,plot each country's production possibilities curve.   (b)Which country has a comparative advantage in the production of food? Of wine? Explain.
(c)Suppose that currently England and France are not trading with each other.England is producing (and consuming)200 tons of food and 30 gallons of wine.France is producing (and consuming)30 tons of food and 200 gallons of wine.As an international trader,how could you take advantage of this situation and make the big bucks?

Quizplus · Accepted Answer

The Answer of Consider the following information about production of wine and food in England and France: $$ \begin{array} { r } 
{ \text { England } } \quad\quad\quad\quad\quad\quad\quad    { \text { France } } \quad\quad\quad\quad\quad\quad\quad\
 \begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Percentage } \
\text { of resources } \
\text { devoted to food }
\end{array} & \begin{array} { c } 
\text { Food } \
\text { Produced } \
\text { (tons) }
\end{array} & \begin{array} { c } 
\text { Wine } \
\text { Produced } \
\text { (gallons) }
\end{array} & \begin{array} { c } 
\text { Food } \
\text { Produced } \
\text { (tons) }
\end{array} & \begin{array} { c } 
\text { Wine } \
\text { Produced } \
\text { (gallons) }
\end{array} \
\hline 100 & 500 & 0 & 50 & 0 \
\hline 80 & 400 & 10 & 40 & 100 \
\hline 60 & 300 & 20 & 30 & 200 \
\hline 40 & 200 & 30 & 20 & 300 \
\hline 20 & 100 & 40 & 10 & 400 \
\hline 0 & 0 & 50 & 0 & 500 \
\hline
\end{array}\end{array}$$ (a)Using the grids below,plot each country's production possibilities curve.   (b)Which country has a comparative advantage in the production of food? Of wine? Explain.
(c)Suppose that currently England and France are not trading with each other.England is producing (and consuming)200 tons of food and 30 gallons of wine.France is producing (and consuming)30 tons of food and 200 gallons of wine.As an international trader,how could you take advantage of this situation and make the big bucks?

Consider the Following Information About Production of Wine and Food