4. Refer to Table 3-2. Assume that England and France each has 10 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is a. 10 units of cheese and 6 units of wine. b. 6 units of cheese and 3.75 units of wine. c. 10 units of cheese and 3.75 units of wine. d. 6 units of cheese and 10 units of wine.

7. Which of the above figures represents economic growth caused by an improvement in the technology of producing product of both X and Y?     a) FIG A     b) FIG B     c) FIG C     d) FIG D

2. Comparative and absolute advantage David and Morgan are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. David Morgan WATERMELON (Pounds) 180 162 On the following graph, use the blue line (circle symbol) to plot David's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Morgan's PPF. 144 126 108 90 72 54 36 1.8 0 Zucchini (Pounds per acre) 28 0 zucchini. 18 90 180 Watermelon (Pounds per acre) 7 6 270 360 450 540 630 720 810 900 ZUCCHINI (Pounds) David's opportunity cost of producing 1 pound of watermelon is pound of watermelon is David's PPF Morgan's PPF has an absolute advantage in the production of zucchini, and has an absolute advantage in the production of watermelon. pounds of…

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

Question 4 There is now also another country, Foreign, there is a labor force of 800. Foreign's unit labor requirement in watermelon production is 5, while in kiwi production it is 1.   a) how many units of watermelon can be produced? when the labor in Foreign country only produce watermelon. b) how many units of kiwi can be produced? When all the labor in Foreign country only produce kiwi.  c) What is the opportunity cost of watermelon in terms of kiwi in Foreign country? d) Describe the pattern of trade. Home country should produce? Foreign country should produce? Why? e) Show that how both Home and Foreign country gain from trade.

5. Use the information on the following transactions for a country named Neverland: i. Local coffee shops sold $10,000 worth of coffee to local consumers. To produce the coffee, they purchased $2,000 worth of coffee beans from local coffee growers. The same growers also sold coffee for $5,000 to a foreign company. ii. The local textile company bought $1,000 worth of wool from an Australian com- pany and produced $10,000 worth of clothes sold to domestic consumers. The local textile company also bought 10 Vespas from Piaggio* (foreign company) at the cost of $1,000 each to use for deliveries. What is the value of Gross Domestic Product (GDP) in Neverland? (a) 27,000 (b) 19,000 (c) 30,000 (d) 24,000 (Right answer)

Pls, Urgent

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14. Which of the following is correct? a. The PPF must be concave. b. The PPF must be a straight line. c. The PPF must be downward sloping. d. The PPF must be upward sloping 15. Which of the following(s) is/are the reason(s) causing the change of PPF in Figure 3? Figure 3: Change of PPF Quantity 25 of 20 Bananas New PPF with economic growth 15 10 Original frontier 10 20 30 40 50 60 Quantity of Fish a. There is an increase in workers producing bananas. b. There is an increase in ships for fish hunting. c. There is an advance in agricultural technology. d. All of the above.