2. Suppose the two countries of Purland and Rurland produce only two commodities and the amounts that they can produce are shown in the production-possibilities table below. Each table has one entry missing. What is the missing entry assuming that the opportunity costs of Chocolate and Textiles are constant? Fill in the blanks and then answer the remaining questions. When you are finished, click the "Check Answers" buttons and see how you did.
 Purland Rurland Without trade, the best each country could do would be: ?? 15 chocolate and 15 textiles 20 chocolate and 20 textiles 30 chocolate and 30 textiles 60 chocolate and 60 textiles Chocolate Textiles . . . Chocolate Textiles 30 0 . . . 60 0 20 20 . . . 40 15 30 . . . 30 15 10 . . . 20 20 0 60 . . . 0 30
If we unite these two countries and find their merged production-possibilities frontier, what do we get? Complete the combined production-possibilities table below.

 Chocolate Textiles If they specialized and traded, each country could have which of the following bundles? ?? 15 chocolate and 15 textiles 20 chocolate and 20 textiles 30 chocolate and 30 textiles 60 chocolate and 60 textiles 90 0 80 70 60 40 20 0 90

3. Jack can fetch 4 pails of water an hour or pick four pecks of peppers. Jill can fetch 2 pails of water an hour or pick three pecks of peppers. Each works alone for four hours. Derive their production-possibilities frontiers:

 Jack Jill Water Peppers Water Peppers 16 __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ 0 __ __ __

Jack wants to consume four pails of water every four hours. How many peppers can he consume? Jill also wants four pails of water every four hours. How many peppers can she consume? Explain how they can specialize (only partially for one of them) and trade and both be better off.
Are they equally well off before trade? Are they equally well off after trade? Do the rich get richer and the poor get poorer, or do both the rich and the poor get richer?
Reflect on the implications of this example and the notion of comparative advantage. Does they say that only the best and brightest are useful in society, or that even people who are not very productive can be useful parts of society?

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