Running head: U2 IP 1
UNIT 2 – Individual Project
Write 800-1,000 words
Suppose that there are two products: clothing and soda. Both Brazil and the United States
produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of
soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda.
Assume the costs remain constant. For this example, assume that the production possibility
frontier (PPF) is a straight line for each country because no other data points are available or
provided. Include a PPF graph for each country in your paper.
Complete the following:
What would be the production possibility frontiers for Brazil and the United
States?
Without trade, the United States produces and consumes 32,500 units of clothing
and 125,000 cans of soda
Without trade, Brazil produces and consumes 50,000 units of clothing and 25,000
cans of soda
Denote these points on each country’s production possibility frontier
Using what you have learned and any independent research you may conduct,
which product should each country specialize in, and why?
, U2 IP 2
Unit 2 Individual Project
Production Possibility Frontier (PPF) Brazil, graph 1
Clothes (thousands)
Clothes 0 50 100
100
Soda 50 25 0
50
0 25 50 soda (thousands)
Production Possibility Frontier (PPF) USA, graph 2
Clothes (thousands)
65 Clothes 0 32.5 65
Soda 250 125 0
32.5
0 125 250 Soda (thousands)
Without trade (USA), graph 3
UNIT 2 – Individual Project
Write 800-1,000 words
Suppose that there are two products: clothing and soda. Both Brazil and the United States
produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of
soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda.
Assume the costs remain constant. For this example, assume that the production possibility
frontier (PPF) is a straight line for each country because no other data points are available or
provided. Include a PPF graph for each country in your paper.
Complete the following:
What would be the production possibility frontiers for Brazil and the United
States?
Without trade, the United States produces and consumes 32,500 units of clothing
and 125,000 cans of soda
Without trade, Brazil produces and consumes 50,000 units of clothing and 25,000
cans of soda
Denote these points on each country’s production possibility frontier
Using what you have learned and any independent research you may conduct,
which product should each country specialize in, and why?
, U2 IP 2
Unit 2 Individual Project
Production Possibility Frontier (PPF) Brazil, graph 1
Clothes (thousands)
Clothes 0 50 100
100
Soda 50 25 0
50
0 25 50 soda (thousands)
Production Possibility Frontier (PPF) USA, graph 2
Clothes (thousands)
65 Clothes 0 32.5 65
Soda 250 125 0
32.5
0 125 250 Soda (thousands)
Without trade (USA), graph 3
