Tom and Abby produce rackets and balls. The tables show their production possibilities. Tom allocates all his resources and produces 2 rackets and 16 balls an hour. Abby allocates all her resources and produces 2 rackets and 4 balls an hour. Tom and Abby decide to specialize and trade. specializes in rackets and produces specializes in balls and produces A. Tom; 2 rackets; Abby; 32 balls B. Tom; 4 rackets; Abby; 8 balls C. Abby; 4 rackets; Tom; 32 balls D. Abby; 2 rackets; Tom; 8 balls E. Tom; 4 rackets; Tom; 32 balls The number of balls produced by 0. If Tom and Abby specialize and trade 1 racket for 8 balls, gets rackets from for less than it gets balls to produce costs from them. to produce them, and for less than it costs Tom's Production Possibilities Rackets (per hour) 0 1 2 3 4 Abby's Production Possibilities Rackets (per hour) and and and and and 0 1 2 3 4 and and and and and Balls (per hour) 32 24 16 8 0 Balls (per hour) ON 69 00 8 4 2 0

Tom and Abby produce rackets and balls. The tables show their production possibilities. Tom allocates all his resources and produces 2 rackets and 16 balls an hour. Abby allocates all her resources and produces 2 rackets and 4 balls an hour. Tom and Abby decide to specialize and trade. specializes in rackets and produces specializes in balls and produces A. Tom; 2 rackets; Abby; 32 balls B. Tom; 4 rackets; Abby; 8 balls C. Abby; 4 rackets; Tom; 32 balls D. Abby; 2 rackets; Tom; 8 balls E. Tom; 4 rackets; Tom; 32 balls The number of balls produced by 0. If Tom and Abby specialize and trade 1 racket for 8 balls, gets rackets from for less than it gets balls to produce costs from them. to produce them, and for less than it costs Tom's Production Possibilities Rackets (per hour) 0 1 2 3 4 Abby's Production Possibilities Rackets (per hour) and and and and and 0 1 2 3 4 and and and and and Balls (per hour) 32 24 16 8 0 Balls (per hour) ON 69 00 8 4 2 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Rafael's PPF Naomi's PPF 30 30 25 25 20 20 A 15 15 10 10 A 5 10 15 20 25 30 10 15 20 25 Rackets Rackets Refer to the diagrams above. Suppose that before trading, Rafael and Naomi had been producing at point A on their respective PPF. Then suppose they choose to specialize and trade. After specializing they trade 8 Rackets for 8 Balls. After this trade, Rafael will consume and Select one: а. 20 Rackets; 8 Balls b. 8 Rackets; 8 Balls C. 8 Rackets; 12 Balls d. 12 Rackets; 8 Balls Balls Balls 30
Sue Tom Good A 10 4 Select one: Good B 15 5 As shown in the table above, Sue and Tom each can produce two different types of goods. For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If she only produces Good B, then she can produce 15 units of Good B per day. For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she only produces Good B, then she can produce 5 units of Good B per day. Which of the following statement is correct about comparative advantage? O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a comparative advantage over Tom in the production of Good B O b. Tom has a comparative advantage over Sue in both tasks O c. Sue has a comparative advantage over Tom in both tasks O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a comparative advantage over Sue in the production of Good B
Eleanor and her little brother Josh are responsible for two chores on their family’s farm, gathering eggs and collecting milk. Eleanor can gather 10 dozen eggs or collect 5 gallons of milk per week. Josh can gather 2 dozen eggs or collect 2 gallons of milk per week.a. The family wants 2 gallons of milk per week and as many eggs as the siblings can gather. Currently, they collect one gallon of milk each and as many eggs as they can. How many dozens of eggs does the family have per week? b. If the siblings were to specialized, which should collect the milk? c. If the siblings were to specialize, how many dozens of eggs would the family have per week? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Eleanor and her little brother Josh are responsible for two chores on their family's farm, gathering eggs and collecting milk. Eleanor can gather 18 dozen eggs or collect 6 gallons of milk per week. Josh can gather 2 dozen eggs or collect 2 gallons of milk per week. a. The family wants 2 gallons of milk per week and as many eggs as the siblings can gather. Currently, they collect one gallon of milk each and as many eggs as they can. How many dozens of eggs does the family have per week? (Click to select) ✓ dozen eggs. b. If the siblings were to specialized, which should collect the milk? (Click to select) c. If the siblings were to specialize, how many dozens of eggs would the family have per week? (Click to select) dozen eggs.
The PPFs below show the daily trade-offs between making Pizza and Lemonade for Alex and Barb. LEMONADE 500 450 400 350 300 250 200 150 100 60 Alex's PPF 50 100 150 200 250 300 350 400 450 500 PIZZAS LEMONADE 500 400 350 300 260 200 150 100 60 Barb's PPF B (180, 180) 50 100 150 200 250 300 350 400 450 500 PIZZAS Based on both Alex's current production and Barb's current production, select all that are true. (A) If Alex and Barb only produce pizzas, they can make 500 pies a day. B If Alex and Barb only produce lemonade, they can make 500 pitchers a day. If Barb produces at Point B and Alex only produce pizzas, they can make 580 pitchers and 180 pies a day. (D) If Barb produces at Point B and Alex only produce lemonade, they can make 580 pitchers and 180 pies a day. If Barb produces at Point B and Alex only produce pizzas, they can make 180 pitchers and 480 pies a day. (F) If Alex produces at Point A and Barb only produce lemonade, they can make 100 pitchers and 650 pies a day. G If Alex…
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Not a previously graded question. Becky is a talented artist who sells hand-crafted goods on her website. Becky currently crafts and sells both picture frames and pillows. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good.
Tom and Abby produce rackets and balls. The graphs show their production possibilities. Tom uses all his resources and produces 2 rackets and 20 balls an hour. Abby uses all her resources and produces 2 rackets and 40 balls an hour. 40- 30- 20- 10- 0+ 0 80- 60- 40- 20- Balls (per hour) 0+ Tom's PPF 1 2 3 4 Rackets (per hour) Balls (per hour) Abby's PPF 3 4 5 1 2 Rackets (per hour) 5 If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket, A. Tom gains 2 rackets while Abby gains 40 balls an hour B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour D. Tom gains 10 balls and Abby gains 10 balls an hour O E. together they gain 80 balls and 4 rackets an hour o N
PA no Page 5 8. Pat and Kerry are considering a partnership. With all Pat's resources, Pat can produce 50 X or 20 Y. With all of Kerry's resources, Kerry can produce 30 X or 30 Y. Assume the resources can be easily substituted to make either product. They are starting by using half of the resources to make each item. These relationships are shown in the following table. Use this information to answer the following questions: Kerry Product X (Xylophones) Product Y (Yams) 50 0 Pat 25 Pat make? 10 0 20 Pat make? 30 0 15 15 0 30 a. Who has an absolute advantage in producing X? Pat b. Who is a comparative advantage in producing Y? Partnership be gained from before they started trading? c. If Pat and Kerry decided to take all the gains from trade in X, how much X would 40 25 d. If Pat and Kerry decided to take all the gains from trade in X, how much X would Gain be gained from before they started trading? e. If Pat and Kerry decided to take all the gains from trade in Y, how much Y would f.…
4) The fact that wants cannot be fully satisfied with available resources reflects the definition of A) the what tradeoff. B) scarcity. C) the big tradeoff. D) for whom to produce. 5) Suppose the Gallo sisters, Ernestine and Julia, were not on speaking terms with one another. They each raised grapes and peanuts. Ernestine could increase her output of grapes by one bushel if she reduced her output of peanuts by two bushels and Julia could increase her output of grapes by one bushel if she reduced her output of peanuts by four bushels. According to this information, Ernestine has: A) a comparative advantage in the production of grapes. B) a comparative advantage in the production of both goods. C) a comparative advantage in the production of peanuts. D) an absolute advantage in the production of peanuts 6) Factors of production are grouped into four categories: A) land, labor, capital, entrepreneurship B) land, labor, capital, money C) land, capital, money, entrepreneurship D) labor,…
2. Determining opportunity cost Juanita is deciding whether to buy a suit that she wants, as well as where to buy it. Three stores carry the same suit, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 Discounted minutes away from where she works, and pay a marked-up Marked-up price price price of $102 for the suit: Juanita's office Original price Travel Time Each Way Price of a Suit (Minutes) (Dollars per suit) Store Local Department Store 15 102 Across Town 30 88 Neighboring City 60 63 Juanita makes $18 an hour at work. She has to take time off work to purchase her suit, so each hour away from work costs her $18 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing…
The table provides information about the production possibilities of a firm that produces bed linens. Quilts (per hour) Possibility A B C Pillows (per hour) 0 8 and and and 16 12 0 Draw points that show the three possibilities defined by the table. Label them A. B. and C. Draw the firm's PPF by connecting the points. Label it. Along this PPF, the quantities of A. all goods other than pillows and quilts are increasing OB. all goods other than pillows and quilts remain constant OC. pillows and quilts are either increasing or decreasing, so there is no scarcity OD. all goods other than pillows and quilts are decreasing