1. Suppose that in the UK 15 million cars could be produced with the sameresources as 13 million airplanes. Suppose that in Poland 15 million cars couldbe produced with the same resources as 14 million airplanes. Which countryhas a lower opportunity cost in producing cars and why?2. In a one-factor economy, you have the following information: Home has 1,200units of labor available. It can produce two goods, apples and bananas. Theunit labor requirement in apple production is 3, while in banana production it is2. Foreign, has a labor force of 800. Foreign's unit labor requirement in appleproduction is 5, while in banana production it is 1.a. Graph Home's & Foreign production possibility frontier. Specify the maximumquantity that can be produced from both goods. Find the absolute value of theslope.b. Compare the opportunity cost of apples in Home and in Foreign.c. If apples are sold at $9/unit and bananas are sold at $5/unit. Find the wages paidin Home to produce apples and bananas.d. Identify the good that Home should specialize in and why.

Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Answered: Suppose that in the UK 15 million cars…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Suppose two countries, France and Germany, use only capital and labor for production. Factor endowments of the nations are presented in the table below. Capital | Labor France 2200 800 Germany 880 220 a. Which country is labor-abundant? Which country is capital-abundant? b. Assume that both countries produce two goods, cars and wine. If cars are capital-intensive and wines are labor-intensive, which country should specialize in the production of cars? Which country should specialize in the production of wines? Explain why?
Which country has an absolute advantage in the production of coffee?
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Suppose the UK has 50 hours of labor available, and the US has 100 hours of labor available. Each can use this labor to produce either cars or bicycles. The UK can produce a car using 10 hours of labor, and a bicycle using 5 hours of labor. The US can produce a car using 5 hours of labor, and a bicycle using 4 hours of labor. Suppose that jointly, the two countries produce 15 bikes and 16 cars. Then it must be that the UK only produces bikes, and the US produces both bikes and cars. the UK produces bikes and cars, and the US only produces cars. the UK only produces cars, and the US only produces bikes. the UK only produces bikes, and the US only produces cars.
Hi! I am currently stuck on this question: Suppose there is an improvement in medical technology that enables more healthcare to be provided with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? I am confused as to why education increases. I know that the medical technology would increase the PPF because of the improvement, but wouldnt that decrease the opportunity cost of education because there is more technology? Thanks!
Suppose there exist two imaginary countries, Congaree and Yosemite. Their labor forces are each capable of supplying four million hours per week that can be used to produce almonds, shorts, or some combination of the two. The following table shows the amount of almonds or shorts that can be produced by one hour of labor.
Currently Bob is producing 8 apples and 9 peppers, while John is producing 3 apples and 3 peppers. If they instead specialized based on comparative advantage, the total number of peppers and apples would change by how much?
And since we're giving up some of one good, does that mean the opportunity cost is a negative number? Josie Well, we don't often say that "it cost us negative two dollars" or "we gave up negative two units of something," right? We just say "it cost two dollars" or "we gave up two units." Sabrina Yeah, the "we gave up" or "it cost us" part kind of implies the negative, doesn't it? Josie Exactly! So we put opportunity cost in terms of absolute value - we get rid of the negative sign. Continue Sabrina Okay, so what is the opportunity cost of one cake if we move from combination A to combination B? (If needed, round to two decimal places.) PPF PPF Point A B C D E Y2 Y1 O Number of Cookies 37 35 29 20 0 X1 X2 Number of Cakes 0 4 7 9 10 D X3 X4 E → Cakes
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.
In Lima one worker can produce either 21 bushels of corn of 5 pounds of tomatoes in one day. In Puma one worker can produce either 54 bushels of corn or 7 pounds of tomatoes in one day. The country that specializes in tomato production is willing to sell one pound of tomatoes for at least how many bushels of corn?
Consider an economy with two producers, Sidney and Connor. Each allocates 8 hours per day between the production of chocolate and bananas. Given 8 hours of labour, Sidney can produce 80kg of chocolate or 16kg of bananas. Connor can produce either 2kg of chocolate or 4kg of bananas per hour. B) Introducing Trade i) Suppose production capacity does not change. Do we expect there to be trade between Sidney and Connor? Why or why not? ii) What are the bounds on the price of bananas (in terms of chocolate) if there is trade? In other words, what range must the price of bananas fall within? iii) Assume a price of 4. In other words, 1kg of bananas cost 4kg of chocolate. Explain why trade is likely to make both Sidney and Connor better off in this case.
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Suppose that in the UK 15 million cars could be produced with the same resources as 13 million airplanes. Suppose that in Poland 15 million cars could be produced with the same resources as 14 million airplanes. Which country has a lower opportunity cost in producing cars and why?