Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 2, Problem 11APA
(a)
To determine
Identify the concept of tradeoff in a
(b)
To determine
Identify the efficiency of the production process.
(c)
To determine
Identify the values of the
(d)
To determine
Identify the relationship between the opportunity costs of two products.
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Students have asked these similar questions
The table shows Yucatan's production possibities,
Food (pounds per month)
Food
(pounds per month)
200
Sunscreen
(gallons per month)
and
200
100
and
400
50
and
600
and
800
150-
Draw the four points defined in the table.
Use the four-point line tool to draw the PPF. Label it.
100
100
IH Yucatan produces 100 pounds of food per month, it
must produce 400 galions of sunscreen to achieve
production efficiency
50
The opportunity cost of 1 pound of food isegallons of
le00
400
Sunscreen (galons per month)
le00
sunscreen
200
1000
The opportunity cost of 1 gallon of sunscroen isO
pounds of food.
> Answer to 2 decmal places.
» Draw only the objects specified in the question
5.
China is able to produce turnips and potatoes in combinations represented by the following table.
(Each number represents 1,000s of bushes.)
Potatoes
Production Turnips
point
a.
B
C
D
E
b.
C.
points.
100 and 0
90
and 10
and 20
and 30
and 40
70
40
0
Plot the data on a production possibilities graph, labeling
Can China produce a combination of 30 turnips and 24 potatoes? Draw this production point on the
graph (label it F) and verbally explain.
Demonstrate that China experiences increasing opportunity costs by calculating the opportunity cost of
producing another potato at each production point. Explain.
Points on Production Possibilities Frontier
Canada
China
Wheat
Computers
Wheat
Computers
A
150
0
90
0
B
100
25
60
60
C
50
50
30
120
D
0
75
0
180
Draw the production possibilities graph for Canada and China and label all of the points on the graph.
For which good does Canada have a comparative advantage?
For which good does China have a comparative advantage?
If Canada and China decide to specialize and trade, how many more computers and bushels of wheat would be available for consumption by both countries? Show the increase on your graphs.
Canada and China decide to impose trade restrictions in the form of a tariff on the computers and wheat. What are the costs or benefits to the consumer, producer and government for each country?
Chapter 2 Solutions
Macroeconomics
Ch. 2.1 - Prob. 1RQCh. 2.1 - Prob. 2RQCh. 2.1 - Prob. 3RQCh. 2.1 - Prob. 4RQCh. 2.1 - Prob. 5RQCh. 2.1 - Prob. 6RQCh. 2.2 - Prob. 1RQCh. 2.2 - Prob. 2RQCh. 2.2 - Prob. 3RQCh. 2.2 - Prob. 4RQ
Ch. 2.2 - Prob. 5RQCh. 2.3 - Prob. 1RQCh. 2.3 - Prob. 2RQCh. 2.3 - Prob. 3RQCh. 2.3 - Prob. 4RQCh. 2.3 - Prob. 5RQCh. 2.3 - Prob. 6RQCh. 2.3 - Prob. 7RQCh. 2.4 - Prob. 1RQCh. 2.4 - Prob. 2RQCh. 2.4 - Prob. 3RQCh. 2.4 - Prob. 4RQCh. 2.4 - Prob. 5RQCh. 2.4 - Prob. 6RQCh. 2.4 - Prob. 7RQCh. 2.5 - Prob. 1RQCh. 2.5 - Prob. 2RQCh. 2.5 - Prob. 3RQCh. 2 - Prob. 1SPACh. 2 - Prob. 2SPACh. 2 - Prob. 3SPACh. 2 - Prob. 4SPACh. 2 - Prob. 5SPACh. 2 - Prob. 6SPACh. 2 - Prob. 7SPACh. 2 - Prob. 8SPACh. 2 - Prob. 9SPACh. 2 - Prob. 10SPACh. 2 - Prob. 11APACh. 2 - Prob. 12APACh. 2 - Prob. 13APACh. 2 - Prob. 14APACh. 2 - Prob. 15APACh. 2 - Prob. 16APACh. 2 - Prob. 17APACh. 2 - Prob. 18APACh. 2 - Prob. 19APACh. 2 - Prob. 20APACh. 2 - Prob. 21APACh. 2 - Prob. 22APACh. 2 - Prob. 23APACh. 2 - Prob. 24APACh. 2 - Prob. 25APA
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