Which panel below shows a comparative advantage in the production of almonds? A C Almonds 0 1234567 Snowboards D B Need Almonds 0 1 2 3 4 5 67 Snowboards Almonds 0 234567 Snowboards Almonds 0 1 2 3 4 5 6 7 Snowboards
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- PISTACHIOS (Millions of pounds) 16 14 12 10 0 0 PPF 2 Glacier 4 6 8 10 12 14 16 PEAS (Millions of pounds) PISTACHIOS (Millions of pounds) 16 14 12 10 0 0 PPF 2 4 6 Congaree 8 10 12 PEAS (Millions of pounds) A 14 16 Glacier has a comparative advantage in the production of while Congaree has a comparative advantage in the production of Suppose that Glacier and Congaree specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of pistachios. million pounds of peas and million pounds of Suppose that Glacier and Congaree agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 6 million pounds of peas for 6 million pounds of pistachios. This ratio of goods is known as the price of trade between Glacier and Congaree.Comparative and absolute advantage Antonio and Caroline are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest. Alfalfa Barley (Bushels per acre) (Bushels per acre) Antonio 40 8 Caroline 28 7 On the following graph, use the blue line (circle symbol) to plot Antonio's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Caroline's PPF. Antonio's PPFCaroline's PPF01002003004005006007008009001000200180160140120100806040200BARLEY (Bushels)ALFALFA (Bushels) _______ has an absolute advantage in the production of alfalfa, and ______ has an absolute advantage in the production of barley. Antonio's opportunity cost of producing 1 bushel of barley is…Geppetto and Lewis decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules. Production Possibilities Schedules Geppetto Puzzles 100 80 Puppets e 10 20 30 40 50 6. Which producer has the comparative advantage in producing puzzles? 401 8 Puppets 0 6 12 18 Lewis Geppetto Puzzles 40 32 O Lewis O Geppetto 24 Leuds 0 b. Which producer has the comparative advantage in producing puppets? c. If both producers decided to trade with each other to stock their toy stores, the terms of trade that would benefit both Geppetto and Lewis (1 puppet = x puzzles) would be between 0 0.80 and 3.33 puzzles per puppet. 0125 and 0.30 puzzles per puppet. 0 0.80 and 0.30 puzzles per puppet 01.25 and 3.33 puzzles per puppet. m D
- Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. Quantity that each make Bushel of Corn Pound of Pork Sardi 20 Tinaka 15 12 10 Refer to Table 3-1. Sardi has a comparative advantage in the production of corn and Tinaka has a comparative advantage in the production of pork. pork and Tinaka has a comparative advantage in the production of corn. both goods and Tinaka has a comparative advantage in the production of neither good. neither good and Tinaka has a comparative advantage in the production of both goods.QUESTION 7 65+ 60+ 55 50 45 40 282828 35+ 30 25 20 15 10 5+ Cay China's PPF + 5 10 15 20 25 30 35 40 45 50 55 Computer OA. 40 cars and 20 computers B. 40 cars and zero computers C. 20 cars and 20 computers 个 Cor 65+ 60- 55 50+ 45+ Refer to figures above. Suppose that China and Japan fully specialize in the goods in which they have a comparative advantage. Trade is then initiated between the two countries and 20 units of cars are exchanged for 20 units of computers. How many units of cars and computers will China be able to consume after trade? D.40 cars and 40 computers 40- 35+ 30 25- 20 15 10- 5 Japan's PPF 5 10 15 20 25 30 35 40 45 50 55 60 ComputerFigure: Comparative Advantage II Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods. Eastland Westland Oranges 100 90 80 70 60 50 40 30 20 10 Oranges 1 0 20 40 60 80 100120 140160180 200 Peaches A) peaches only. B) oranges only. 100 90 80 70 60 50 40 30 20 10 19. (Figure: Comparative Advantage II) Examine the figure Comparative Advantage II. Eastland has a comparative advantage in producing: C) both oranges and peaches. D) neither oranges nor peaches. 0 20 40 60 80 100 120 140 160 180 200 Peaches
- Alex and Henry are completing group work for class. The input table below gives the time that it takes Henry and and Alex to complete their homework assignments in hours Time to complete Worksheets Time to complete Essays 2hours 3hours Henry 1 hour Alex 1 hour Who has the comparative advantage in Essays? O Alex O Both Henry and Alex O Henry ONeither Henry nor Alex O We cannot determine who has comparative advantage120 80 10 20 60 20 30 40 40 40 40 60 | 20 80 Who has the comparative advantage in the production of corn? A) Both B) Jane C) Neither D) Jake 698 ***R Imagine that it costs $40 in the United States to produce one ton of soybeans and transport them to market, while it costs $30 in Brazil to produce one ton of soybeans and transport them to market Imagine that it costs $20,000 in the United States to produce one automobile and transport it to maket, while costs $10,000 in Brazil to produce one automobile and transport it to market. Which of the following four arrangements would be most efficient? (Hint: Derived OC from PPF (production) = 1/OC derived from costs to make ) a. The United States should produce everything, since it can produce both soybeans and automobiles better than Brazil can produce them. Ob. Brazil should specialize and produce only automobiles. The United States should specialize and produce only soybeans. Then the two countries should trade with each other. Brazil will send automobiles to the United States, while the United States sends soybeans to the Brazil. Oc. The United States should specialize and produce…
- The table below presents production schedule of apples and bananas in the country of mistania - assume that these are the only two goods that Mistania produces. Each row represents a specific set of apples and bananas that Mistania could produce. Suppose Mistania was currently at Senario C, producing 10 bananas and 80 apples. According to the data in this table, if Mistania wanted to produc 1 more banana, how many fewer apples will it need to produce? Scenario Bananas Apples A 0 100 B 5 90 C 10 80 D 15 70 E 20 60The following production possibilities schedule shows the quantities of soybeans and oil that can be produced in Canada and Mexico with one unit of equivalent resources Of (barrels) 12 6 Canada Mexico Mexico would not gain by producing and exporting oil and importing soybeans unless it received O A more than 4 17 bushels of soybeans per barrel of of OB. 2 bushels of soybeans per barrel of o OC any quantity of soybeans OD. more than 5 42 bushels of soybeans per barrel of ol OE more than 0.5 barrel of ol Soybeans (bushels) 65 25Suppose our two PPFs for are: Germany Cars 20 8 1 1 6 Food O both countries 10 O Korea O neither country O Germany Cars 10 6 Korea B Food Which country has the comparative advantage in Cars? 10
