Suppose Amber and Jade can spend their days making croissants or writing poems. Their output per hour at each activity is the following: Amber Jade Croissants 40 30 In this situation, can mutually beneficial trade occur? Select one: OA Yes, if Amber specializes in writing poems and trades them to Jade for her croissants. OB. No, because Amber more productive than Jade at both activities. OC. Yes, if Amber specializes in making croissants and trades them to Jade for her poems. OD. No, because Jade is more productive than Amber at both activities. Poems 5 3

Suppose Amber and Jade can spend their days making croissants or writing poems. Their output per hour at each activity is the following: Amber Jade Croissants 40 30 In this situation, can mutually beneficial trade occur? Select one: OA Yes, if Amber specializes in writing poems and trades them to Jade for her croissants. OB. No, because Amber more productive than Jade at both activities. OC. Yes, if Amber specializes in making croissants and trades them to Jade for her poems. OD. No, because Jade is more productive than Amber at both activities. Poems 5 3

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules Production Possibilities Schedules Geppetto Puzzles 80 64 48 32 16 0 Puppets 0 Geppetto: 10 20 30 40 50 Puzzles 50 40 30 20 10 8 puzzles and Lewis Puppets e Instructions: Enter your answers as a whole number. a. Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? Puzzles (Click to select)) Puppets: (Click to select) b. The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Lewis puzzles and puppets 30 45 60 75 90 puppets
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Suppose Amber and Jade can spend their days making croissants or writing poems. Their output per hour at each activity is the following: Croissants Poems Amber 40 2 Jade 30 1/2 In this situation, can mutually beneficial trade occur? Select one: A. No, because Jade is more productive than Amber at both activities. B. Yes, if Amber specializes in making croissants and trades them to Jade for her poems. C. No, because Amber more productive than Jade at both activities. D. Yes, if Amber specializes in writing poems and trades them to Jade for her croissants.
Jake and Jill spend their time picking apples and strawberries. The quantities they can pick in an hour are shown in the table below. Quantity Picked in One Hour Pounds of Apples Pounds of Strawberries Jake 8 4 Jill 10 10 Suppose Jake specializes in picking apples, and Jill specializes in picking strawberries. If Jake and Jill then trade 3 apples for 2 strawberries, Jake will end up consuming Suppose Jake specializes in picking apples, and Jill specializes in picking strawberries. If Jake and Jill work for one hour, then trade 3 apples for 2 strawberries, Jake will end up consuming apples and strawberries.
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The graph shows Wendell's PPE Wendell's opportunity cost of playing one hour of squash as he spends more time playing squash 養 O A. increases, because each additional hour he spends playing squash results in a greater decrease in his calculus grade O B. decreases, if he gets more benefit from playing squash than from studying calculus O C. is constant, if he gets as much benefit from playing squash as he does from studying calculus O D. increases, because a tradeoff exists between playing squash and studying calculus
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The production possibilities are listed below: Coconuts Pineapples 8. 2. 4 2 8. Which of the following best describes the PPF for the information above? Select one: O a. The opportunity cost of producing an additional pineapple decreases as the amount of coconuts produced decreases O b. The opportunity cost of producing an additional pineapple is the same at every point O c. The opportunity cost of producing an additional pineapple is zero at every point O d. The opportunity cost of producing an additional pineapple increases as the amount of coconuts produced increases 6. 4.
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Suppose equilibrium in the market for strawberries is disturbed by two simultaneous events: a wildfıre destroys many acres of coastal land used to plant strawberries, and blueberries (a substitute for strawberries) experience a large price increase. What would we expect to happen in the market for strawberries? The equilibrium price would decrease, but the impact on the amount sold in the market would be ambiguous. The equilibrium quantity would decrease, and the equilibrium price would increase. O The equilibrium price would increase, but the impact on the amount sold in the market would be ambiguous. The equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. Both equilibrium price and equilibrium quantity would decrease.
Consider two individuals, Fred and Barney. In one hour, Fred can produceeither 15 gallons of beer, or 3 gallons of wine. In one hour, Barney can produce2 gallons of beer or 4 gallons of wine. Assume both goods can be produced incontinuous quantities. Assume that each person wants to consume 3 gallons of wine, then as muchbeer as they can. Determine what each person will end up consumingi) when they cannot trade.ii) when they can trade at a price of 1gallon wine = 2 gallons beer.Use this to explain why trade benefits both consumers.