Figure 3-2
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities Frontier
-Refer to Figure 3-2.Suppose Azerbaijan is willing to trade 3 nails to Uzbekistan for every bolt that Uzbekistan makes and sends to Azerbaijan.Which of the following combinations of bolts and nails could Azerbaijan then consume,assuming Uzbekistan specializes in making bolts and Azerbaijan specializes in making nails?

Question

Figure 3-2
Uzbekistan's Production Possibilities Frontier
Azerbaijan's Production Possibilities Frontier  
-Refer to Figure 3-2.Suppose Azerbaijan is willing to trade 3 nails to Uzbekistan for every bolt that Uzbekistan makes and sends to Azerbaijan.Which of the following combinations of bolts and nails could Azerbaijan then consume,assuming Uzbekistan specializes in making bolts and Azerbaijan specializes in making nails?

Quizplus · Accepted Answer

Azerbaijan is willing to trade 3 nails for every bolt. So, for every bolt that Uzbekistan makes and sends to Azerbaijan, Azerbaijan can consume 3 nails.A) 8 bolts and 56 nails: 8 bolts x 3 nails/bolt = 24 nails. This is less than the 56 nails that Azerbaijan can consume. So, this combination is not possible.B) 14 bolts and 44 nails: 14 bolts x 3 nails/bolt = 42 nails. This is less than the 44 nails that Azerbaijan can consume. So, this combination is not possible.C) 18 bolts and 32 nails: 18 bolts x 3 nails/bolt = 54 nails. This is more than the 32 nails that Azerbaijan can consume. So, this combination is not possible.D) 20 bolts and 26 nails: 20 bolts x 3 nails/bolt = 60 nails. This is more than the 26 nails that Azerbaijan can consume. So, this combination is not possible.Therefore, the only combination that is possible is A) 8 bolts and 56 nails.

Figure 3-2 Uzbekistan's Production Possibilities Frontier