W 7. Plot the PPC of a nation given by the following data. All Other Combination Health Care Goods A 100 B 25 90 50 70 D 75 40 E 100 a. Calkulate the marginal opportunity cost of each combination. b What is the opportunity cost of combination C? c Suppose a scond nation has the following data. Plot the PPC, and then determine which nation has the comparative advantage in which activity Show
Q: Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1 hour. a)…
A:
Q: Pat and Chris can spend their nonleisure time working either in the marketplace or at home…
A: A budget constraint in economics refers to all the combinations of goods and services that a…
Q: a) Draw a production possibilities frontier (PPF) for a society that produces two goods, guns and…
A: The production possibilities frontier (PPF) is a downward sloping curve which is concave to the…
Q: 6. Given that Nathan has 10 acres and can grow 15 bales of hay or 40 bushels of corn on anacre,…
A: * Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: A production possibilities frontier (PPF) is O A. a curve that shows the potential productive…
A: Due to limited resources in society including the capital, labor, raw materials, and land at any…
Q: Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1hour A)…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: (a) Which producer has an absolute advantage in the production of Pastries? Which producer has an…
A: Absolute advantage refers to the ability to produce more goods and services than the competitor.…
Q: Although a production possibilities frontier is usually drawnfor a country, one could be drawn for…
A: The production risk frontier could be a curve in business analysis that depicts the numerous amounts…
Q: Consider the following figure that illustrates production possibilities frontier (PPF) for colas and…
A: Consider the below points: *Any point that exists on the PPF exhibits efficient production. *Any…
Q: Suppose that there are 10 million workers in Canada and that each of these workers can produce…
A: Given, total workers in Canada = 10 million workers Total cars that can be produced by workers = 2…
Q: Wat's Production Possibilities Product A B C D E F Rice 750 600 450 300 150 0 Corn 0 50 100 150 200…
A: Production possibilities shows us the various combination of goods (here, rice and wheat) which can…
Q: Maximum poSSible bination öf food and clothing that can be produced in a given period of time is…
A: When one wants to find out the different combinations of amounts of two commodities can be produced…
Q: a) What will the value of the PPF/PPC be in a two factor model with L=Labor along the horizontal…
A: PPF/PPC is that curve which determines different production possibilities of two goods (say cloth…
Q: 25 U buy 20 salads from joe 20 Joe bays 10 smoothies from Li 15 10 Lir's Joe's PPF • 10 is 20 25 30…
A: In business investigation, the production possibility curve (PPF) is a bend that represents the…
Q: Production Possibilities Curve D E PPC Housing(units per year) he production possibilities curve…
A: The production possibility curve shows the combination of two goods that can be produced with the…
Q: Assume you have a production possibilities frontier (PPF) bowed out from the origin with healthcare…
A: The Production Possibility Frontier is the locus point of all the different combinations of the two…
Q: A. You have an apple orchard and have recentlylorang added a small plot of land for oranges as well.…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Chile's Production Possibilities Frontier Colombia's Production Possibilities Frontier 20 Totea 20…
A: The production possibilities curve (PPC): The curve shows different combinations of output that can…
Q: (a) What is the opportunity cost for Walton to produce a unit of AC? (b) What is the opportunity…
A: Opportunity Cost is the benefit that would have been derived from the next best alternative but is…
Q: Muriel and Edgar each have 30 labor hours available per week to knit hats and scarves. In 30 hours,…
A: Since you have asked multiple subparts we would be answering the first three for you. To get the…
Q: Use le below to answer the following questions. Table 2.1.1 The following table gives points on the…
A: Point Production of X Production of Y Opportunity cost A 0 40 0/40=0 B 4 36 4/36=0.11 C 8 28…
Q: uppose the land of Hardheart can make 2 goods, hamburgers & hot dogs, as listed below. Define…
A: Given Production schedule A B C D E Hamburgers 0 50 120 180 250 Hot dogs 210 135 85 40 0
Q: Scenario1: a. If your company can make two goods, use a numerical table and list different…
A: (a). Let the business produce good X and good Y. The following is a list of production…
Q: The four people listed below are the only workers In an economy that works 10 hours per day and only…
A: The production possibility frontier states and shows the number of inputs used or the amounts of two…
Q: Save A production possibilities frontier (PPF) is ul O A. a curve that shows the potential…
A: PPF States the possibility of production of two goods with given resources and technology. So here…
Q: a. What is the Production Possibility Frontier? b. How is the PPF applicable to international…
A: since you have asked a multipart question and according to our policy we can only solve the first 3…
Q: Exercise 1.4 You and your partner are highly efficient people. You can earn $20 per hour in the…
A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…
Q: Le consumption possibilities frontier shows a. a nation's opportunity cost of producing different…
A: A country is said to have a comparative advantage if it can produce the good at a lower opportunity…
Q: Which country has an absolute advantage in the production of fruit? Which country has an absolute…
A: Hi, thank for the question. Since there are multiple sub-parts are posted, we will answer first…
Q: Ice cream (millions of gallons per year) 5 A 3 3 5 Milk (millions of gallons per year) The figure…
A: Production possibility frontier: - it is the graphical representation of different combinations of…
Q: Suppose there are three people that can bake bread or making pies. The first is Merrick whose…
A: Production possibility frontier: The production possibility frontier (PPF) is a curve that depicts…
Q: 12 10 Mac's PPE Izzie's PPF 2 2 10 Television sets (per month) 12 The production possibility…
A: A production possibilities frontier (PPF) is a graphical representation that shows various…
Q: The following table describes the production possibilities frontier (PPF) confronting an economy.…
A: Opportunity Cost is the Cost of foregone alternative. In order to choose one option a person has to…
Q: The four people listed below are the only workers Ih. Use the table below and the questions below to…
A: Production possibility frontier (PPF) curve shows the different possible combination of two goods…
Q: the production o1 Production Opportunity Cost of Good X Good Y Possibility Good X 100 B. 2. 90 4. 60…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Home country has 1,200 units of labor available. It can produce two goods, apples and bananas. The…
A: The Production Possibility Frontier (PPF) is a curve illustrating the varying amounts of two…
Q: When a country has a comparative advantage in the production of a god, t means that it can produce…
A: A country has a comparative advantage in the good which it produces at a lower opportunity cost than…
Q: Question 2 (1 polnt) The four people listed below are the only workers In an economy that works 10…
A: Hello dear student, You have asked multiple questions in single post. I am going to answer one…
Q: 2. 10 Bananas (thousand tons) 88 69 9. 18 7. LL 2. 4. 10 8. 5. Bananas (thousand tons) Submit All O…
A:
Q: Can this country produce 24 units of butter and 4 missiles? Explain. Where would this point lie on…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…
Q: If the production possibilities frontier of Scopia shifts outward as shown in the figure below,…
A: PPF shows the combination maximum production of books and tablets that the economy can produce,…
Q: The table below presents production schedule of apples and bananas in the country of mistania -…
A: In Scenario C = 10 bananas and 80 apples are produced In Scenario D = 15 bananas and 70 apples are…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
- scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.The country Autarka does not allow international trade.In Autarka, you can buy a wool suit for 3 ounces ofgold. Meanwhile, in neighboring countries, you can buythe same suit for 2 ounces of gold. This suggests thata. Autarka has a comparative advantage inproducing suits and would become a suitexporter if it opened up trade.b. Autarka has a comparative advantage inproducing suits and would become a suitimporter if it opened up trade.c. Autarka does not have a comparative advantagein producing suits and would become a suitexporter if it opened up trade.d. Autarka does not have a comparative advantagein producing suits and would become a suitimporter if it opened up trade
- Two countries, Korea and Vietnam, are engaging in international trade.They produce two goods: automobiles and cloth. We observe a relativeabundance of cheap labor in Vietnam and a relative abundance of capitalin South Korea. a. Assume that automobiles are capital-intensive and cloth are cheaplabor-intensive. Using the Hecksher-Ohlin theory, explain what willhappen in trade between these two countries, in terms of export andimport. c. Draw a graph that shows the above situation in South Korean economy with a P P F and two relative prices (one before trade and theother after trade). The quantity of automobiles (QAuto) is on thehorizontal axis and the quantity of cloth (QCloth) is on the verticalaxis.A В C E F G Trucks 20 28 35 40 43 45 Cars 54 52 49 43 35 25 How could the PPC shift to the left?When a country has a comparative advantage in the production of a god, t means that it can produce this good at a lomer opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFs) for Maldonia and Desania. Both countries produce lemons and tea, each intialy (i.e, befare spedialization and trade) producing 24 million pounds of lemons and 12 milion pounds of tea, as indicated by the grey stars marked with the letter A. Maldonia Desonia 40 24 PPF 2 41 s LEMONS (Miliona of pounda) 16 34 2 4 16 34 LEMONS (Mona of pounda) Maldonia has a comparative advantage in the production of . while Desonia has a comparative advantape in the ▼ . Suppose that Maidonia and Desonia specialize in the production of the goods in which each has a comparative advantage. Alter specialization, the two countries can produce a total of 45 milion pounds of tea and48…
- Are the following statemen ts true or false? Explain ineach case.a. ''1Wo countries can achieve gains from trade evenif one of the countries has an absolute advantagein the production of all goods."b. "Certain talented people have a comparativeadvantage in everything they do."c. ''U a certain trade is good for one person, it can'tbe good for the other one.''d. ''U a certain trade is good for one person, it isa lways good for the other o ne.''c . "U trade is good for a country, it must be goodfor everyone in the country.''Does intra-industry trade contradict the theory of comparative advantage?What factors does Paul Krugman identity that supported expanding international trade in the 1800s?
- In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?Why isn’t trade between two countries like a game inwhich one country wins and the other loses?Are the following staten1ents true or false? Explain ineach case.a. "1wo countries can achicv" gains from trade evenif one of the countries has an absolute advantagein the production of all goods."b. "Certain talented people have a comparativead\'antage in """'}'thing they do."c. "If a certain trade is good for one person, it can'tbe good for the other one.''d . ''If a certain trade is good for one person, it isalways good for the other one."e. "If trade is good for a country, it mLtSt be goodfor everyone in th" country."