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-(Figure: The Production Possibility Frontiers for Jackson and Tahoe)Use Figure: The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 kilograms of wheat,while Tahoe produces and consumes 80 head of cattle and 60 kilograms of wheat.Assume that each nation specializes completely,based on comparative advantage,and the price of 1 head of cattle equals the price of 2 kilograms of wheat.If Jackson exports 120 kilograms of wheat to Tahoe,Tahoe will export _____ head of cattle to Jackson.

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Use the following to answer questions: 
-(Figure: The Production Possibility Frontiers for Jackson and Tahoe)Use Figure: The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 kilograms of wheat,while Tahoe produces and consumes 80 head of cattle and 60 kilograms of wheat.Assume that each nation specializes completely,based on comparative advantage,and the price of 1 head of cattle equals the price of 2 kilograms of wheat.If Jackson exports 120 kilograms of wheat to Tahoe,Tahoe will export _____ head of cattle to Jackson.

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If Jackson exports 120 kilograms of wheat to Tahoe, it can produce 80 - 120/2 = 20 head of cattle. Tahoe can produce 80-20 = 60 head of cattle and export them to Jackson. Therefore, the answer is B) 60.

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