Diego and Kris are roommates. They spend most of their time studying, but they leave some time for their favorite activities: making pizza and brewing root beer. Diego takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kris takes 6 hours to brew a gallon of root beer and 4hours to make a pizza. a) What is each roommate's opportunity cost of making a pizza? Who has the absolute advantage in making pizza? Who has the comparative advantage in making pizza? b) If Diego and Kris trade foods with each other, who will trade away pizza in exchange for root beer? c) The price of pizza can be expressed in terms of gallons of root beer, what is the highest price at which pizza can be traded that would make both roommates better off? What is the lowest price? Why?

Kim and Abby are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Kim and Abby, of taking time to clean their room:  If both Kim and Abby clean, they each spend  two hours and get a clean room.  If Kim decides not to clean and Abby does all the cleaning, then Abby spends 10 hours cleaning (Kim spends 0) but Abby is exhausted.  The same would occur for Kim if Abby decided not to clean - Kim spends 10 hours and becomes exhausted.  If both girls decide not to clean, they both have a dirty room. a.  What is the best outcome for Kim and Abby? What is the worst outcome? (It may help you to construct a prisoner's dilemma table) b. Unfortunately, we know that the optimal outcome will most likely not happen, and that the worst outcome will probably be chosen instead.  Explain what it is about Kim's and Abby's reasoning that will lead them both to choose the worst outcome.

Bill and Melinda work for a firm that creates web pages and apps.  The number of web page designs and apps each can produce in a week is given in the table below.                                                                       Output per Week   web pages designed apps created Bill 3 12 Melinda 2 4   Melinda’s opportunity cost of designing one web page is: Group of answer choices designing 2 apps designing 3 apps designing 4 apps designing 5 apps

On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF.     Nick and Rosa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest.   Corn Rye     Nick 12 3 Rosa 15 5     (ROSA OR NICK)  has an absolute advantage in the production of corn, and  (ROSA OR NICK)  has an absolute advantage in the production of rye.   Nick's opportunity cost of producing 1 bushel of rye is__________bushels of corn, whereas Rosa's opportunity cost of producing 1 bushel of rye is_________ bushels of corn. Because Nick has a(HIGHER OR LOWER)    opportunity cost of producing rye than Rosa, (NICK OR ROSA)   has a comparative advantage in the…

Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls, or install 6 outlets. In one hour, Bill can paint 5 walls, or install 5 outlets In order to maximize their work per hour, (Click to select) should just paint walls, and (Click to select) ♥ should just install outlets

Suppose that Verania and Josimar are roommates that need to complete some household chores. Vacuuming and washing dishes need to be done. They know from the last time they did these chores that it takes Verania 2 hours to vacuum and 1 hour to wash dishes. It takes Josimar 3 hours to vacuum and 2 hours to wash dishes. Josimar says it does not matter which task each of them performs because Verania is faster at both tasks. Josimar’s reasoning a. is wrong. Because Verania has a comparative advantage in washing dishes, she should wash dishes, and Josimar should vacuum. b. is correct. Because Verania is faster at both tasks, there is no benefit in each volunteer specializing in one task or the other. c. is wrong. Because Verania has an absolute advantage in both tasks, she should perform both tasks herself. d. is wrong. Because Josimar has a comparative advantage in washing dishes, he should wash dishes, and Verania should vacuum.

estion 20 of 20 > Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent can bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour. Please answer the four questions. 1. Which cook has the absolute advantage in baking 2. Which cook has the absolute advantage in making cakes? pizzas? ONeither O Vincent O Jean O Jean O Vincent O Neither 3. Which cook has the comparative advantage in baking 4. Which cook has the comparative advantage in making cakes? pizzas? Unit 7- Chapter 1..xlsx 0 Unit 7-Chapter 1...xlsx Topic 2 (2).docx Topic 2 (1).docx Show all 11:10 PM 73 F EENG 12/8/2021 ins prt sc f12 delete COLI dn 6d 6J 144 I14 backspace unu lock of enter H. pause T shift pua alt ctrl

Problem 2 Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have ten hours of time available. The can use their time to do one of two things: make pancakes or make hamburgers. Bob can make two hamburgers in an hour or one pancake in an hour. Jake can make three pancakes in an hour or two hamburgers in an hour. Use this information to answer the following questions: a.) Draw Jake and Bob's PPFS, with hamburgers on the x-axis. b.) Give equations for Jake and Bob's PPFS in y = mx+b form, still treating hamburgers as the x variable. c.) Who has absolute advantage in the production of hamburgers? Who has absolute advantage in the production of pancakes? d.) Who has comparative advantage in the production of hamburgers? Who has comparative advantage in the production of pancakes? e.) Can Bob and Jake both benefit from trade if the terms of trade are one pancake per hambruger? Why or why not?

Matt and Lin are two producers and consumers for lamps and beds. Each of them works 40 hours in a week. Hours required for Matt to produce one unit of lamps or beds are 1 hours or 10 hours, respectively. Hours required for Lin to produce one unit of lamps or beds are 2 hours or 8 hours, respectively. Assuming their PPFs are straight lines. Calculate the correct options that complete the following statements on Matt's PPF. A) If Matt produces only lamps, they can produce  ? unit(s) of lamps. If Matt produces only beds, they can produce ? unit(s) of beds B)  Calculate the correct options that complete the following statements on Lin's PPF. If Lin produces only lamps, they can produce  unit(s) of lamps. If Lin produces only beds, they can produce  unit(s) of beds. C)  What is the marginal opportunity cost of producing an extra unit of lamps for Matt? An extra unit of lamps costs  unit(s) of beds. D)  What is the marginal opportunity cost of producing an extra unit of lamps for Lin?…

Fill in the blanks: Suppose that Jake and Jill have the ability to pick either apples or strawberries. The following table shows how much they can pick in one hour. Quantity Picked in One Hour Pounds of Apples Pounds of Strawberries Jake 8 4 Jill 10 10 If Jake and Jill each has 10 hours available and each person divides the time equally between picking apples and strawberries, then together they can pick pounds of apples and pounds of strawberries. Now if Jake spends all 10 hours picking apples and Jill spends all 10 hours picking strawberries, then together they can pick pounds of apples and pounds of strawberries.