Econ 102 TOP Exam Questions And CORRECT Answers

The production possibilities frontiers in the figure to the right show how many bananas and coconuts you (Y) and your neighbor (N) can consume without trade. Suppose you are initially consuming 10 bananas and 4 coconuts and your neighbor is initially consuming 6 bananas and 8 coconuts. Now, suppose you and your neighbor specialize by each only producing the good for which you have a comparative advantage. You give your neighbor half of your production for half of what he produces. (Enter all responses as integers.) If you trade with your neighbor, then you will have 88 additional coconut(s) after the trade and 55 additional banana(s). At the same time, your neighbor will be able to consume 99 additional banana(s) and will be better off as a result of trade.