G11 National Specialization Review Practice

1. Which country should specialize in bread and which should specialize in

milk? What will be an appropriate exchange ratio (how many milk can one
bread exchange for) so that both countries are happy.
Output (units of) Bread Milk
Country A 100 200
Country B 90 250

2. Same questions as the above, how should the specialization happen and
what will be an appropriate exchange ratio
Output (million units of) Smartphone Cloth
Country X 10 30
Country Y 2 20

3. Same questions as above

Hours needed to make a Car Bike
Country W 40 2
Country Z 20 10

4. According to the trading possibility curve, what product is Spain specializing

in? If Spain specializes in the product and export one third of them, how
much of the other product can they get?
5. According to the trading possibility curve, what product is the country
specializing in? If they specializes in the product and export half of them,
how much of the other product can they get?