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,Nabia 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,Nabia should specialize in the production of:

Quizplus · Accepted Answer

The production possibilities curve for Nabia shows that they have a comparative advantage in producing wheat, while Pada has a comparative advantage in producing corn. Therefore, Nabia should specialize in producing wheat and trade with Pada for corn. This will allow both countries to benefit from their comparative advantages and increase overall production and efficiency.

Exhibit 21-1 Production Possibilities Curves