Imagine a world in which there are two countries, Country A…

Imagine a world in which there are two countries, Country A and Country B.  If Country A produced nothing but corn, it could produce 150 tons per day. If Country A produced nothing but cars, it could produce 40 per day. If Country B produced nothing but corn, it could produce 100 tons per day. If Country B produced nothing but cars, it could produce 20 per day.  This gives us the graphs below. Imagine both countries specialize based on their advantages. Country A then agrees to give Country B 20 cars per day. Country B agrees to give Country A 80 tons of corn per day in exchange. How many cars and tons of corn does Country A have at the end of each day after this trade occurs?

Suppose you have a choice of 3 schools. The Elite School wil…

Suppose you have a choice of 3 schools. The Elite School will give you $140,000 of benefit, and cost you $120,000.  The Mid School will give you $60,000 of benefit, and cost you $20,000. The Safe School will give you $30,000 of benefit, but cost you nothing because of scholarships.  Based on the economic surplus, which school should you choose to attend? Relevant Equations Below: