1. Two nations, Omoland and Agbaland, can produce either clothing or food using all their availableresources at constant opportunity cost. Shown below is the daily production of clothing or food inOmoland and Agbaland.(5 points)ClothingFoodOmoland12020Agbaland8020(a) Which nation has the absolute advantage in producing food? Explain.(b) Which nation has the comparative advantage in producing food? Explain using numbers.(c) Assume the two nations specialize based on their comparative advantage. If the two nationsengage in trade and one unit of food is exchanged for 5 units of clothing, will these terms oftrade be mutually beneficial? Explain.(d) Assume Agbaland invented new equipment to only increase the production of clothing.(i) Draw a correctly labeled graph of Agbaland's initial production possibilities curve, withclothing on the horizontal axis and food on the vertical axis. Plot the numerical values above onthe graph.AP Microeconomics Module 1 Assessment – Fundamental Economic Concepts(ii) Show the effect of the new equipment on Agbaland's production possibilities curve.

Detailed explanation:(a) Both Omiland and Agbaland possess the capacity to produce 20 units of food…

Answered: 1. Two nations, Omoland and Agbaland,…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 5PA

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What is absolute advantage? What is comparative advantage?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
6. Given that Nathan has 10 acres and can grow 15 bales of hay or 40 bushels of corn on anacre, while Simon has 10 acres and can grow 20 bales of hay or 35 bushels of corn per acre a. What is the maximum amount of corn and hay that they can jointly produce?b. Does Nathan have a comparative advantage in growing hay?c. Does Simon have an absolute advantage in growing hay?d. What is the opportunity cost to Nathan of one bale of hay?
Use le below to answer the following questions. Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. Point Production of X Production of Y 40 B 4. 36 28 12 16 E 16 The data in Table 2.1.1 illustrate that Select one: A. the producer has a comparative advantage in the production of X. B. the producer has a comparative advantage in the production of Y. C. the opportunity cost of producing an additional unit of Y increases as the production of Y increases. O D. the opportunity cost of producing an additional unit of Y is constant as the production of X increases. O E. the opportunity cost of producing an additional unit of Y decreases as the production of Y increases. Clear my choice
QUESTION 1 Pis Tim Pies Dave 10 The graphs above depict loe Cream loe Cream the amounts of ice cream and pies that Tim and Dave can make in a given weekend. Use this to answer the questions that follow. Suppose that currently Dave is producing 3 units of pies and 2 units of ice cream, while Tim is producing 5 units of pies and 3 units of ice cream. If they instead specialize based upon the principle of comparative advantage, what would be the change in the total number of pies and ice cream produced? O a. +5 pies and +3 ice cream O b. +2 pies and +1 ice cream O c. +2 pies and no change in ice cream O d. +1 pie and +2 ice cream QUESTION 2
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IVIOVIng tu anouier questioT Wir save uISTespoTIse. Question 6 12 Mac's PPF Izzie's PPF 8 10 12 Television sets (per month) The production possibility frontiers for Mac and Izzie are shown in the figure above. Based on this figure, answer the following questions: a) In what product does each of Mac and Izzie have an absolute advantage? b) What is the opportunity cost of one television set for each of Mac and Izzie? c) Suppose that Mac and Izzie wish to specialize in one product and then trade with each other, in which product will each of Mac and Izzie specialize and how many units will they produce d) How many units of televisions should be traded for computers in order for Mac and Izzie to reach point c? e) What does the space between points a and c represent? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). I U S Paragraph A V In *G 哈O Arial 10pt x X, 田由田用因 () 图 HE
If Country A's opportunity cost for produc 1 pound of cashews is 5 pounds of coffee, and Country B's opportunity cost is 1 pound of coffee, which country has a comparative advantage in cashew production? O the country that can produce the most coffee O the country that can produce the most cashews O Country B O Country A
Ice cream (millions of gallons per year) 5 A 4 В 3 2 3 4 Milk (millions of gallons per year) The figure above shows the production possibilities frontier for a country. The opportunity cost of a gallon of milk between combination point A and Bis A) 4 gallons of ice cream for a gallon of milk. B) 3 gallons of ice cream for a gallon of milk. C) 1 gallon of ice cream for a gallon of milk. D) 1/3 of a gallon of ice cream for a gallon of milk. E) zero because at point A, zero milk is being produced.
Please no written by hand and no image
Refer to Figure 3-8. If the production possibilities frontiers shown are each for one day of production, then which of the following combinations of coffee and soybeans could Chile and Colombia together make in a given day?

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