Question

You see that country B can make 60 units of X and no Y at point j, or it can make no X and 30 Y at point f. So, if country B decides to produce point j instead of point f (if can do any point f through j) where it gives up units of Y it gets back X, how many units of X does it gain for each unit of Y given up

Answer 1

Country B gaines 2 units of good X , per unit of Good Y sacrifised.

Explanation:

Country B's production possibilities in form of goods (X,Y) are :

• Point J [Only good X] = (60,0)
• Pont F [Only good Y] = (0,30)

The country can produce 60 units of good X or 30 units of good Y, by complete specialisation in either good & not producing the other good.

The country has more (twice) advantage in producing good X. As, it can produce 2 times more good X, than good Y, from the same available resources.

If it decides to produce at point J, production specialising in Good X: It will produce only good X, no units of Y. This implies that - it gains 2 units of good X per unit of good Y sacrifised, as per their production potential ratio (60:30)