The following table shows the

The following table shows the number of days of labor required to produce a unit of textiles and autos in the United Kingdom and the United States:

(a) Calculate the number of units of textiles and autos that can be produced from 1 day of labor in each country.
(b) Suppose that the United States has 1,000 days of labor available. Construct the production-possibilities frontier for the United States.
(c) Construct the U.S. consumption-possibilities frontier with trade if the terms of trade are 1 auto: 2 units of textiles.
(d) Select a pretrade consumption point for the United States, and indicate how trade can yield a consumption point that gives the United States greater consumption of both goods.


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