5a. Assume that a basket of goods and services costs $30, 000 in If the U.S. and 40,000 Australian dollars (AUD) in Australia. PPP holds, what is Es/AUD ? b. Provide one explanation for why PPP may not hold in the short run.

COURSES 16 Study Tools 16 24 32 40 LEMONS (Millions of pounds) 48 56 64 College Success Tips The following graph shows the same PPF for Desonia as before, as well as its initial consumption at point A. Career Success Tips Help [+SIGN OUT As you did for Candonia, place a black point (plus symbol) on the following graph to indicate Desonia's consumption after trade. རྩ་ནི་དྷྭ༅་སི་ན་ TEA (Milions of pounds 16. B PPF 0 8 16 24 Desonia 40 LEMONS (Millions of pounds) Consumption After Trade ⑦? True or False: Without engaging in international trade, Candonia and Desonia would have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) True O False Grade It Now Save & Continue Continue without saving

It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.

Consider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours available per month 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. ols Corn Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Contente 16 A-Z Euphoria 20 Initially, suppose Contente uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans, while Euphoria uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Contente produces million bushels of corn and 48 million pairs of jeans, and Euphoria produces 15 million bushels of corn and 20 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 jeans it produces. ▼…