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

Problem 1QTC

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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?