2015CapitalGoods 10(inmillions)AB4 million capital goods5 million capital goods6 million capital goods10 million capital goods1/4 million capital goodsEDConsumer Goods(in millions)12 15Refer to the graph. Suppose the country is producing at point A. What is the opportunity cost of increasing theproduction of consumer goods to 6 million?

A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

20 15 Capital Goods 10 (in millions) 5 4 million capital goods 5 million capital goods 6 million capital goods 10 million capital goods O1/4 million capital goods Ste Consumer Goods (in millions) 12 15 Refer to the graph. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of consumer goods to 6 million?

20 15 Capital Goods 10 (in millions) 5 4 million capital goods 5 million capital goods 6 million capital goods 10 million capital goods O1/4 million capital goods Ste Consumer Goods (in millions) 12 15 Refer to the graph. Suppose the country is producing at point A. What is the opportunity cost of increasing the production of consumer goods to 6 million?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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Exercise 2 Suppose that each worker in the Foreign country can produce two cars or three TVs. Assume that Foreign also has four workers. a. Graph the production possibilities frontier for the Foreign country.
In the process of calculating the production of the economy of the United States, which of the following must be taken into account? Ca. The fact that some of the goods that people buy are shipped to the United States from abroad b. The fact that some of the goods produced in the economy are shipped to other countries c. The fact that some goods are used as inputs into the production of other goods, like hamburgers d. All of the above e. Only a and b
SMARTPHONES (Millions) 40 20 0 PPF 0 40 60 CORN (Millions of bushels) Which of the following is true regarding this economic model? O In order to construct such a model, an economist would need real life data regarding countries that produce only two goods. O The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. O This PPF is not an economic model. O The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. 20 80 100
Homework (Ch 03) Attempts: Keep the Highest: 3/4 2. Gains from trade Consider two neighboring island countries called Contente and Felicidad. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Rye Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Contente 6. 12 Felicidad 16 Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Contente produces 6 million bushels of Is rye and 36 million pairs of jeans, and Felicidad produces 12 million bushels of rye and 16 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…
1. The countries France and Italy produce Perfumes and Leather Coats using only labor as an input. AvailableLabor for France and Italy is 3000 and 1000 respectively. Unit of labor per Leather Coat in France is 6 units and inItaly are 2 units. France needs 2 units of labors to produce 1 bottle of Perfume and Italy needs 4 unit of labor. a) Draw the Production Possibility Curve by using relevant information. b) Which country has the comparative advantage in producing Perfume?
Draw the production possibilities frontier on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis Annual Production of Y Annual Production of X 0 20 45 60 70 75 1300 1200 900 6:00 350 0 b. If the economy is producing 45 units of X and 900 units of Y, what is the opportunity cost of producing an extra 15 units of X. Show on graph. C. If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of X. Show on graph.
Assume that Andy and Henry, without trading with each other, will produce and consume the following number of steel bars and ketchup bottles. The Gains from Trade Without trade Person Good Production Consumption Gains from Trade Andy Steel bars 60 60 +35 Btl. Ketchup 60 60 +15 Henry Steel bars 20 20 +5 Btl. Ketchup 20 20 +5 Now, Assume that both Andy and Henry decide to specialize, and then Andy trades 25 steel bars to Henry for 75 Btls. ketchup. This outcome is shown in the table below. Compared to the result without trade, what are the gains from trade that Andy experiences when he and Henry specialize and trade? The Gains from Trade With specialization Person Good Production Consumption Gains from Trade Andy Steel bars 120 95 (keep) +35 Btl. ketchup 0 75 (from Henry) +15 Henry Steel bars 0 25 (from Andy) +5 Btl. ketchup 100 25 (keep) +5
Suppose in Baku with total 300 minutes labour hours available the economy can only produce mangoes and oranges. If it takes 120 minutes to produce 1 kg oranges and 60 minutes to produce 1 kg mangoes. Answer the following questions and sub-parts as well: a. Find the maximum oranges that can be produced. b. Find the maximum mangoes that can be produced. c. In the given figure, identify inefficient production point, briefly explain why it is inefficient. d. In the given figure, identify unattainable production point, briefly explain why it is unattainable. e. In the given figure, identify efficient and attainable production point, briefly explain why it is efficient and attainable. Mangoes Oranges
Output of Consumer Goods (units per year) D O с E G B Output of Military Goods (units per year) Iceland has no military. a. So, at what point in the figure is Iceland producing? point (Click to select) ✓ b. If Iceland decided to produce the quantity OE of military goods, how much consumer output would it have to give up? Give up quantity (Click to select)
11:19 Assessment- Sugar-rush-for-hy... Sugar rush for hyperactive Brics By Robert Plummer, Business reporter, BBC News, 2/9/09 The price of raw sugar is hitting highs not seen for nearly three decades - and the surge is having a sweet-and-sour effecet on two of the burgeoning Brie economies. Sugar futures reached more than 24 cents a pound this week, the dearest they have been since February 1981. That makes it a valuable earmer for the Centre-South region of Brazil, the largest sugar-cane growing area in the world. At the same time, Brazil's position is strengthened by a collapse in production in India, the world's number two sugar producer. The weakest monsoon rains in the Asian subcontinent for many years have led to widespread drought, hitting crops hard. However, India remains the top consumer of sugar and is relying on Brazilian imports to make up the shortfall. Up to one million tonnes of Brazilian sugar have been bought by India in recent weeks, according to traders' estimates…
(Table: Four persons) The table lists the minutes that it will take four people to wash a car and to sort and fold a load of laundry. Use the data to answer the question. Table: Four persons Minutes it takes to: Wash a car Sort and fold a load of laundry Asad 150 50 Junko 120 50 Jason 90 45 Jen 80 45 Who has a comparative advantage in washing a car? Asad Jason Junko Jen Incorrect
“The country that is abundant in a factor exports the good whose production is intensive in thatfactor.” Explain the above statement with the help of a graph.