An economy is said to have a comparative advantage in the production of a good if it can: produce that good with more resources than another economy. produce that good with a higher opportunity cost than another economy. produce that good outside its production possibilities curve. produce the good at a lower opportunity cost than another economy.

An economy is said to have a comparative advantage in the production of a good if it can: produce that good with more resources than another economy. produce that good with a higher opportunity cost than another economy. produce that good outside its production possibilities curve. produce the good at a lower opportunity cost than another economy.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 7SQ

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A country's production possibilities frontier will be a straight line if Group of answer choices the economy is producing efficiently. increasing the production of one good by x units entails no opportunity cost in terms of the other good. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good. the economy is engaged in trade with at least one other economy.
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Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a unit of good Y. What is the opportunity cost of producing 2 units of good Y? 4 units of good X 2 units of good X 1/6 unit of good X 6 units of good X Zero opportunity cost, if all the labor is currently employed
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What is the opportunity cost of obtaining more of one good, as it relates to the production possibilities frontier? the amount of the other good that must be given up the market price of the additional amount produced the amount of resources that must be devoted to its production the number of dollars that must be spent to produce it
Two countries produce two goods and they each have 3 million hours of labor. Consider the table that shows the quantity produced per labor hour: Shirts Corn (bushels) Alpha 4 12 Beta 2 10 If each country specializes in the good for which it has a comparative advantage then in total the two countries can together produce million shirts and million bushels of corn. Enter whole numbers.
Consider a trade economy with two people (A and B) and two goods (1 and 2). Person A's utility function is U A = x1x2 where xi is A's consumption of good i E (1, 2). Person B's utility function is U B = y1 + y2, where yi is B's consumption of good i = (1, 2). There are 20 units of each good in the economy. Which of the following allocations are efficient? (a) x1 = 10, x2 = 10, y1 = 10, y2 = 10. (b) x1 = 7, x2 = 7, y1 = 13, y2 = 13. (c) x1 = 0, x2 = 0, y1 = 20, y2 = 20. (d) x1 = 15, x2 = 10, y1 = 5, y2 = 10. (e) x1 = 12, x2 = 12, y1 = 6, y2 = 6.
As the manager at a local florist, you supervise two employees, Anita and Jerome. There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and it takes her 40 minutes to make one delivery. It takes Jerome 10 minutes to finish one floral arrangement and it takes him 30 minutes to make one delivery. a. Who has a comparative advantage in floral arrangements? What about deliveries? b. Suppose, initially, Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day doing deliveries. If you changed their tasks so that each individual did nothing but the task for which they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?
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