Assume the U.S. and Mexico do not trade and that both countries need some combination of cars and trucks. Look at the production possibilities frontier for both countries. What level of production of cars and trucks would you recommend for each country if they did not trade? Assume both cars and trucks are needed. (Look at a few different points to evaluate.). Provide at least a one sentence explanation of why you chose the point you chose for each country. What would you suggest each of these countries produce? Explain your answer. (Make sure to include the number of cars and trucks each country should produce.)

Assume the U.S. and Mexico do not trade and that both countries need some combination of cars and trucks. Look at the production possibilities frontier for both countries. What level of production of cars and trucks would you recommend for each country if they did not trade? Assume both cars and trucks are needed. (Look at a few different points to evaluate.). Provide at least a one sentence explanation of why you chose the point you chose for each country. What would you suggest each of these countries produce? Explain your answer. (Make sure to include the number of cars and trucks each country should produce.)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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