1. The production possibilities curves above show all the possible combinations of helicopters and scooters that two towns, Millerville and Jamestown, can create using equal amounts of resources. 2. Prior to answering this question, develop a rubric for scoring this assessment. Read the question carefully and determine where you think the College Board would award a point. Include an explanation for each point you identify. List points for each section on a separate line. You might set this up as a table if that is easier. The maximum number of points awarded should be between 8 and 12.

A. Explain which country has the absolute advantage in the production of helicopters.

B. Using the concept of opportunity cost that you learned in this lesson, explain which country has the comparative advantage in the production of scooters. You may include a table for your explanation. (Hint: Is this an input or output question?)

C. If the two countries specialize and trade with each other, identify which country would import scooters. Explain.

D. Assume Millerville was producing 30 scooters and 10 helicopters before specialization. If Millerville wanted to maintain production of 30 scooters, would they benefit from trade with Jamestown if the terms of trade were set such that one scooter is traded for one helicopter?