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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.If both nations specialize completely in the good of their comparative advantage and Jackson exports 120 kilograms of wheat to Tahoe in exchange for 60 head of cattle,then the new consumption point for Jackson after trade is _____ kilograms of wheat and _____ head of cattle.

Question

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.If both nations specialize completely in the good of their comparative advantage and Jackson exports 120 kilograms of wheat to Tahoe in exchange for 60 head of cattle,then the new consumption point for Jackson after trade is _____ kilograms of wheat and _____ head of cattle.

Quizplus · Accepted Answer

After trade, Jackson exports 120 kg of wheat and receives 60 head of cattle. Initially, Jackson produced 30 head of cattle and 80 kg of wheat. After trade, Jackson consumes 80 kg of wheat (since it exported 120 kg) and 60 head of cattle (received from Tahoe).

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