the opportunity cost of producing an extra tonne of beef
products in New Zealand? In Australia?
c. What is the pattern of comparative advantage between
these two countries?
d. Assume that both countries have 100 units of equivalent
resources. On scale diagrams with dairy products on the
horizontal axis and beef products on the vertical axis,
draw each country’s production possibilities boundary.
e. What is the interpretation of the slope of the production
possibilities boundary?
13. The table below shows indexes for the prices of imports and
exports over several years for a hypothetical country.
