Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 2, Problem 19APA
(a)
To determine
Draw the graph of K’s
(b)
To determine
Identify the specialization level in the PPF.
(c)
To determine
Identify the total
(d)
To determine
Identify the value of share of total gains from the trade between K and L.
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Students have asked these similar questions
Elif can produce 6 pies or 30cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1 hour.
On the PPF lines, show what Elif produces and what Ahmet produces when they specialize.
When they specialize and trade, what are the total gains from trade?
If Elif and Ahmet share the total gains equally, which quantities of pies and cakes do they trade?
个
The table shows Frigidia's production possibilities.
Fish
(pounds per month)
300
200
100
0
Draw the four points defined in the table.
Use the four-point line tool to draw the PPF. Label it.
and
and
and
and
Skis
(pairs per month)
0
50
100
150
If Frigidia produces 200 pounds of fish per month, how many pairs of skis must it produce to achieve
production efficiency?
Frigidia must produce pairs of skis to achieve production efficiency.
What is Frigidia's opportunity cost of producing 1 pound of fish and 1 pair of skis?
pairs of
The opportunity cost of 1 pound of fish is
skis
300-
250
200-
Fish (pounds per month)
150-
100-
50-
25
50
75 100 125
Skis (pairs per month)
150
17!
Suppose there are two bakers in town: Sarah and Amy. Sarah can bake 4 loaves of bread or 8 pies in one day. Amy can bake 6 loaves
of bread or 2 pies in one day. Please do the following:
(a) Calculate the opportunity cost for both Sarah and Amy for baking pies and bread
(b) Draw both Sarah and Amy's PPF curve
(c) Who has an absolute advantage in baking bread? In baking pies?
(d) Who has a comparative advantage in baking bread? In baking pies?
(e) Determine a specific trade (i.e. give me numbers) that would make both Sarah and Amy better off.
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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