. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth ?     a) wine costs 2 man-hours/bottle and cloth costs 6 man-hours/yard in Portugal.     b) wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in Portugal.     c) cloth costs 2 man-hours/yard and wine costs 1 man-hours/bottle in Portugal.     d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.

France produces agricultural products and manufactured products, using both labour and capital. When France engages in free trade, it starts exporting manufactured products, which is capital intensive. In the long run, which one of the following scenarios is incorrect? O France remains capital abundant. O Allocation of French capital changes compared to autarky. O Real rental in the manufacturing industry increases more than the real rental in the agricultural industry. O Real wage in France falls.

Economy

1. The following production possibilities schedule shows the quantities of soybeans and oil that can each be produced in Canada and Mexico with one unit of equivalent resources Refer to the table below. Mexico would not gain by producing and exporting oil and importing soybeans unless it received Canada Mexico Soybeans (bushels) 60 24 Oil (barrels) 10 8 O more than 6 bushels of soybeans per barrel of oil O more than 10 barrel of oil O any quantity of soybeans O more than 3 bushels of soybeans per barrel of oil

In the graph above, the resources in this economy are A. specialized at producing corn. B. specialized at producing robots. C. not specialized toward either corn nor robots (they're generic).

(Ch 03) Homework Consider two neighboring island countries called Dolorium and Bellissima. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Corn Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Dolorium 5 20 Bellissima 8 16 Initially, suppose Bellissima uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Dolorium uses 3 million hours of labor per week to produce corn and 1 million hours per week to produce jeans. Consequently, Dolorium produces 15 million bushels of corn and 20 million pairs of jeans, and Bellissima produces 8 million bushels of corn and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and…

Refer to the production possibility frontiers for two friends Frodo and Sam who can both produce Ice creams and Jelly beans. Frodo's maximum production of Ice creams is 500 with no Jelly beans, or 2,000 Jelly beans with no Ice creams. Sam's maximum production of Ice creams is 600 with no Jelly beans, or 1,200 Jelly beans with no Ice creams. ICE CREAMS ICE CREAMS 600 500 1200 JELLY BEANS 2000 JELLY BEANS Frodo' PPF Sam's PPF Answer briefly these TWO questions in the box space provided below. Part A: Assuming efficient production without trade, derive the maximum amount of Jelly beans that can be produced by Sam along with 300 Ice creams. Describe your steps in detail. Part B: Assume that Frodo and Sam agree to specialize in production and trade between themselves. Frodo offers 1,000 Jelly beans to Sam in exchange for 300 lce creams. Would Sam agree to this trade?

25. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in wine?     a) Portugal     b) England     c) Both     d) Neither     e) Cannot tell

Below table shows the production possibilities for the country of Emilon: Rice Beef A 0 100 В 100 11 90 с 180 70 D 240 40 E 280 0 a. The total cost of producing 180 rice is 70 units of beef b. The total cost of going from possibility C to possibility D is units of beef c. The approximate per-unit cost of going from possibility C to possibility D is units of beef answers to 2 decimal places. Remember to round 0.05 up to 0.10. d. The total cost of going from possibility D to possibility C is v units of rice V v v If necessary, round your