Suppose there exist two imaginary countries, Yosemite and Sequoia. Their labor forces are each capable of supplying four million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. Country Yosemite Sequoia Pistachios (Pounds per hour of labor) 8 5 Chinos (Pairs per hour of labor) 16 20 Suppose that initially Yosemite uses 1 million hours of labor per day to produce pistachios and 3 million hours per day to produce chinos, while Sequoia uses 3 million hours of labor per day to produce pistachios and 1 million hours per day to produce chinos. As a result, Yosemite produces 8 million pounds of pistachios and 48 million pairs of chinos, and Sequoia produces 15 million pounds of pistachios and 20 million pairs of chinos. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces. Yosemite's opportunity cost of producing 1 pound of pistachios is pistachios is of chinos. Therefore, a comparative advantage in the production of chinos. of chinos, and Sequoia's opportunity cost of producing 1 pound of has a comparative advantage in the production of pistachios, and has Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces pistachios will produce million pounds per day, and the country that produces chinos will produce million pairs per day.

Consider two neighboring island countries called Dolorium and Contente. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Rye Jeans (Bushels per hour of labor) (Pairs per hour of labor) Dolorium 5 20 Contente 8 16   Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Dolorium uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Dolorium produces 15 million bushels of rye and 20 million pairs of jeans, and Contente produces 8 million bushels of rye and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans…

If a country (say the UK) has 900 units of labour available, can produce two goods (cars and PCs) and the unit labour requirement in car production is 5 while in PCs production it is 2, the opportunity cost of cars in terms of PCs would be 2.5. Indicate whether the above statement is True or False, AND with a couple of sentences explain why.

Consider two neighboring island countries called Euphoria and Bellissima. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Rye Jeans (Bushels per hour of labor) (Pairs per hour of labor) Euphoria 4 16 Bellissima 6 12   Initially, suppose Bellissima uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Euphoria produces 12 million bushels of rye and 16 million pairs of jeans, and Bellissima produces 6 million bushels of rye and 36 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and…

Hand written answer is not allowed dear.

While traveling by car during one of his many overseas travels, a famous economist spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic. “Then instead of shovels, why don’t you give them spoons and create even more jobs?” the Nobel Laureate inquired. Who used this story to illustrate the power of human capital enhanced by productivity?

A great nation of Wakanda has two sectors. The largest sector of the economy involves mining vibranium, refining it, and using it for producing vibranium shields. The second sector is about mining and polishing infinity stones. Wakanda sells both vibranium shields and infinity stones on the underground intergalactic markets. identify and briefly explain if and how each of the following affects Wakanda's production possibilties frontier (will it shift or tilt, upward or inward, etc.) (a) A new deposit of vibranium has been discovered recently, The new discovery make vibranium miners (but not infinity stone miners) much more productive. (b) Due to increased intergalactic hostilities, demand for infinity stones has dropped dramatically.

Apple Republic and Banana Republic have 60,000 workers and 120,000 workers, respectively, and labor is the only factor of production. Unit labor requirements for both countries are given in the table below. Units of labor required per unit of output Banana Apple 4 2 Compute relative autarky price ratios (price of pork relative to that of fish) for both countries, defined as Pp/PF. Pork Fish 4 8

For the annual school bazaar, Emmy can produce and sell either origami frogs (F) or birds (B). For his origami he needs to work with sheets of paper, glue, and paper clips. Below table shows how many units of each input factor is needed to produce one origami. It also shows the total amount of input units available. Emmy’s profits per origami bird and frog are =1 and =2, respectively. 1:Which formula describes the sheets of paper constraint? a F <= 5 b F <= 6-2/3B c B <= 5 d F <=7-1B 2: Which formula describes the glue constraint? a F <=7-1B b F <= 5 c B <= 5 d F <= 6-2/3B 3: Which formula describes the paper clips constraint? a B <= 5 b F <=7-1B c F <= 6-2/3B d F <= 5 4: The iso-profit line has a slope of negative a…

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