Poor country Rich country Wheat Cloth 6 8 2 20 (a) What are the opportunity cost ratios for these two countries? (b) Show how each country could gain from trade if the poor country could produce (before trade) 3 wheat for 1 cloth and the developed.
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- Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should each country specialize in? (f) Calculate the gains from trade from specialization.bongo O Topic: H G How wc A Recorde * Min x b Answere A Files A Grades Q ETX 20 Q Midtern Q ETX 20 Q ЕTX 20 M Inbox (7 A Assignn C Crunch N Netflix O (5) COA ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=5983131871027318950422967971&elSBN=97803571336688&id=D1056367112&isnapshotld=2191097& Update : Geoffrey v CENGAGE MINDTAP Q Search this course A My Home Homework (Ch 16) The following graph shows the money market in equilibrium at an interest rate of 7.5% and a quantity of money equal to $60 billion. Courses Show the impact of the increase in government purchases on the interest rate by shifting one or both of the curves on the following graph. O Catalog and Study Tools A-Z Partner Offers EE Rental Options 15.0 Money Supply - College Success Tips 12.5 Money Demand Career Success Tips RECOMMENDED FOR YOU 10.0 Money Supply 7.5 5.0 Evaluating Online Money Demand Information 2.5 e Help 20 40 60 80 100 120 Give Feedback MONEY (Billions of dollars) Suppose that for each…Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should each country specialize in?
- Suppose that US and France produce cars and wine at different speeds wine cars 10 minutes/ 1 bottle 60 minutes/ 1 bottle France 2 days/ car US 3 days/ car (a) draw PPF for France and for US (b) calculate opportunity costs for both wine and cloths for both countries (c) which country has absolute advantage and in which product? (d) which country has comparative advantage and in which product? (e) if they decide to trade who will export wine and who will export cars? (f) at what price?ization and trade h X al for School PRDG 100 text C2024 SPRING CRED learn.maricopa.edu/courses/1315553/quizzes/3862261/take ome hat yllabus Modules Assignments Discussions Grades Library Resources New Analytics Student Resources Tutoring Studio ing S + 7 Course Placement CT2Learn P In-Text Citations Suppose that an hour of work in Brazil can produce 1 pound of coffee or 4 pounds of sugar. In Colombia, an hour of work produces 2 pounds of coffee or 5 pounds of sugar. Which country has the absolute advantage in coffee? Which country has the absolute advantage in sugar? What is the opportunity cost of coffee? In Brazil In Colombia What is the opportunity cost of sugar? In Brazil ▸ Study.com G Google In Colombia Q Search sugar H sugar coffee Which country has the comparative advantage in coffee? coffee Which country has the comparative advantage in sugar? FB 00 PRE DELL W ParentVUE SAM SAM y Informal speech prt sc 4 RE home New Tab HA) 1/2 hour (B) 6 hours 1/16 hour CASHEWS (Pounds) D) 2 hours 400 360 320 280 240 200 160 120 80 40 Brazil's PPF Refer to Figure 3B. If the production possibilities frontier shown is for 16 hours of production, then how long does it take this country to make one pound of peanuts? 1 2 3 4 5 6 7 PEANUTS (Pounds) 8 9 10
- 1. Production Possibilities It has been determined that Germany and France can produce the following combinations of consumer and capital goods. Germany Option Consumer Goods Capital Goods A 0 B C D E 400,000 300,000 200,000 100,000 25,000 50,000 75,000 100,000 France Consumer Goods Capital Goods 1,200,000 0 900,000 600,000 300,000 0 150,000 300,000 450,000 600,000 Complete parts a, b, and c. a. Graph the production possibilities curve for both nations on separate graphs with capital goods on the x-axis in each case. b. Does the Law of Increasing Opportunity Costs hold for France? Explain why or why not. c. If Germany wanted to experience higher levels of economic growth over the next few years, would they be better off choosing option B (a combination of 15000 capital goods and 90000 consumer goods) or option D (a combination of 45000 capital goods and 30000 consumer goods)? Explain.Given the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS(K) LACO,250) B(109 200) C C200, ISo) D(30, l00) E(GO0,0) CONSUMER 6000S (C) c. What is the opportunity cost of producing 1 more unit of capital goods if this economy is currently producing at point C?What factors does Paul Krugman identity that supported expanding international trade in the 1800s?
- wine 90 80 70 60 50. D012 mani 40 30 20 10 PPF Portugal (c) 1 bome of (0)2 bottles of sine (0)3 bottles of wine CPF of t 0 10 20 30 40 50 60 cloth 11. What is the elave price opportunity cost of col in England, betere trade beges? A) 1/2 yard of cloth wine 90 80 70 60 50 40 30 20 10 England PPF CPF 0 10 20 30 40 50 60 clothGiven the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS (K) LACO,250) B(409200) c C200, ISo) D (300, l00) E(GO0,0) CONSUMER 600as (C) e. Suppose that there is a technological improvement in producing consumer goods that results in twice as many units of consumer goods being produced from the available resources in this economy. Draw the new production possibility frontier for this economy given this change. Assume that there are no changes in technology with regard to capital good production.Imagine you have access to a technology that allows you to instantaneously travel toa McDonald’s in any country in the world. For each of the scenarios below, answerwhether it makes you more or less likely to buy a Big Mac in the United States.5(a) Brazil places tariffs on US products, limiting imports from America.(b) The US becomes a much riskier place to invest because of widespread politicalunrest.(c) Firms in the UK become much more profitable than those in the US.(d) The global economy surges, sparking higher consumption everywhere in the world.(e) Japan’s central bank cuts interest rates in that country.(f) Mexico’s firms do a much better job of marketing their products to the UnitedStates.