MC5

ECO
100
–
James
E.
Pesando
 Term
Test
1
–
October
18,
2013
 Answer
key
 
 1.

 Russia
can
produce
50
cars
per
week
or
200
computers
per
week.

Japan
can
 produce
75
cars
per
week
or
300
computers
per
week.
(14
marks)

 (a)
Calculate
the
opportunity
costs
of
cars
and
computers
for
each
country?
 
 Cars
 Russia
 Japan
 Computers
 4
computers
 
 
 4
computers
 ¼
cars
 ¼
cars
 
 
 (b)
What
trade
ratio(s)
will
allow
Japan
and
Russia
to
both
gain
from
trade?



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