Introduction

Assumption has been made that there are only two nations and two commodities involved
in this analysis. The two nations are Lagoona and Dreamland where both nations produce camel
patty (caty) and wooden clogs (klompen).

Lagoona Production Possibilities Dreamland Production Possibilities

at Full Employment at Full Employment
Klompen
Caty (Millions Caty Klompen
(Thousands of Tons) Point (Thousands of Tons) (Millions of pairs)
Of pairs) Point
0 A 45 E 0 30
1 B 30 F 2 20
2 C 15 G 4 10
3 D 0 H 6 0

Caty Lagoona Caty Dreamland

(Thousands of Tons) (Thousands of Tons)

Klompen Klompen
(Millions of (Millions of
pairs) pairs)