Here are 3 similar questions:
1. Econ A can produce either 24bl units of Y or 12bl units of X (or any linear combi of the 2). Econ B can produce either 12bl units of Y or 12bl units of X. Econ A must carry on consuming at least 12bl Y and Econ B must consume at least 6bl units of X. There can be no trade between both countries. True or False? Explain
2. 2 Econs produce only X and Y. Econ 1 can produce either 80 Y or 20 X (or any linear combi of the 2). Econ 2 can produce either 40 Y or 20 X. Therefore, there exists no price for which Econ 1 gains from trading with Econ 2. True or False? Explain.
3. Consider 2 Econs where labour is the only means of production and they both produce only X and Y. In Econ A, 1unit of labour can make either 2y or 4x. In Econ B, 1unit of labour can make either 1y or 1x. Econ A has 100 units of labour and 200units of labour in Econ B. As a unit of labour in Econ A can produce more of either X or Y than a unit of labour in Econ B, Econ A would not wish to trade with Econ B. True or False? Explain.
The important similarities have been highlighted n red. Can you identify why these are important?
There is only one phrase highlighted in blue because it is different from the rest of the questions. Will you be able to think out of the box?