Arthur can milk 10 goats per hour or shear 4 sheep per hour. Ben can milk 6 goats per hour or shear 3 sheep per hour. Who has the absolute advantage at milking goats? Who has the absolute advantage at shearing sheep? What are the opportunity costs of milking a goat for Arthur and Ben? What are the opportunity costs of shearing a sheep for Arthur and Ben? Based on comparative advantage, who should milk goats and how should shear sheep?

Gary and Brenda both have similar businesses in the garment industry making caps and backpacks. In one day, Gary can make 60 caps and 12 backpacks when he divides his production resources equally between the two products. In one day, Brenda can produce 80 caps and 20 backpacks. Answer the following questions and show all calculations to support your answers.  a. Who has the comparative advantage in producing backpacks? Explain with calculations.b. What is Brenda's opportunity cost of making a cap compared to Gary's? Explain with calculations.c. Based on your calculations in a) and b) above, who should specialize in making what if they intend to trade? Explain with calculations.d. If Gary and Brenda decide to specialize in what they do best, what would be the new production per day for each of them? Explain with calculations.e. If Gary and Brenda decide to trade, what would be the terms of trade for a backpack and how does each benefit from trading? Explain with calculations.

There are 10 workers in Thailand and each can produce either 2 computers or 30 tons of rice. There are 20 workers in the United States and each can produce either 5 computers or 40 tons of rice. Draw the production possibilities frontier for each country. In each case, identify the intercepts and the slopes of the production possibilities frontier.

Paul's PPF Sue's PPF Cheese Cheese 100 80 60 Ham 30 Ham Based on the graph above, which of the following statements is true? The Principle of Absolute Advantage does not help us determine how trade would benefit Paul and Sue. O Sue would lose out by trading with Paul, because she is less competitive than Paul in the production of both goods. O Paul has nothing to gain from trading with Sue, since he is better in making both goods. Sue has an absolute advantage in the production of cheese.

Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following question:  Who has absolute advantage in the production of hamburgers and who has absolute advantage in the production of pancakes?

In an hour, Megan can produce 5 fruit smoothies or 15 ice cream sundaes, while Jensen can produce 17 fruit smoothies or 85 ice cream sundaes. Which statement is false about Jensen and Megan? Jensen has an absolute advantage in both goods. Jensen's opportunity cost of producing 1 smoothie is 5 sundaes. Megan has a comparative advantage in producing ice cream sundaes. O Megan's opportunity cost of producing 1 smoothie is 3 sundaes.

Suppose that in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies. a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines? Blank 1 Blank 1

Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following question:  Who has comparative advantage in the production of hamburgers and who has comparative advantage in the production of pancakes?

Wheat 8 Paul 10 Corn Wheat 6 4 Cliff Refer to Figure 3-1. What do the two producers have a comparative advantage in? Corn Paul has a comparative advantage in both wheat and corn. Paul has a comparative advantage in wheat, and Cliff has a comparative advantage in corn. Cliff has a comparative advantage in wheat, and Paul has a comparative advantage in corn. Cliff has a comparative advantage in both wheat and corn.

Alice can collect 10 coconuts or catch 1 fish per hour. Hs friend Emma can gather 30 coconuts or catch 2 fish per hour. What is alice opportunity cost of catching 1 fish? What is Emma's? Who has an absolute advantage in catching fish? Who has a comparative advantage in catching fish?