The following graphs show the production possibilities frontiers (PPFs) for Freedonia and Lamponia. Both countries produce potatoes and tea, each initially (i.e., before specialization and trade) producing 6 million pounds of potatoes and 3 million pounds of tea, as indicated by the grey stars marked with the letter A. ? ? Freedonia Lamponia 16 16 14 14 12 12 PPF 10 10 TEA (Millions of pounds) 8 TEA (Millions of pounds) 8 8 PPF 4 1 - 1 2 2 0 0 T 0 2 4 6 14 16 0 2 12 14 16 8 10 12 POTATOES (Millions of pounds) 4 6 8 10 POTATOES (Millions of pounds) Freedonia has a comparative advantage in the production of production of Suppose that comparative advantage. After specialization, the two countrie while Lamponia has a comparative advantage in the specialize in the production of the goods in which each has a million pounds of potatoes and million pounds of potatoes tea. tea neither potatoes nor tea Suppose that Freedonia and Lamponia agree to trade. Each s on producing only the good in which it has a comparative advantage. The countries decide to exchange 2 million pound both potatoes and tea pounds of tea. This ratio of goods is known as the terms of trade between Freedonia and Lamponia. The following graph shows the same PPF for Freedonia as before, as well as its initial consumption at point A. Place a black point (plus symbol) o graph to indicate Freedonia's consumption after trade. Note: Dashed drop lines will automatically extend to both axes. (? Freedonia 16 14 Consumption After Trade 12 + 10 TEA (Millions of pounds) 8 6 PPF 4 A 2 0 0 2 14 16 4 8 8 10 12 POTATOES (Millions of pounds) As you did for Freedonia, place a black point (plus symbol) on the following graph to indicate Lamponia's consumption after trade. (? Lamponia 16 14 Consumption After Trade 12 PPF 10 (Millions of pounds) 6 TEA 4 A 2 0 0 2 10 12 14 16 POTATOES (Millions of pounds) True or False: Without engaging in international trade, Freedonia and Lamponia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) True False