Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 2, Problem 2.2.14PA
To determine
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Elijah and Aneesha are farmers. Each one owns a 14-acre plot of land. The following table shows the amount of maize and squash each farmer can
produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the
land and squash on the rest.
Elijah
Aneesha
SQUASH (Pounds)
140
On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Aneesha's PPF.
126
112
98
84
70
42
28
14
0
Maize
(Pounds per acre)
10
18
0
Squash
(Pounds per acre)
6
70 140 210 280 350 420 490 560 630
MAIZE (Pounds)
700
Elijah's opportunity cost of producing 1 pound of squash is
squash is
pounds of maize. Because Elijah has a
comparative advantage in the production of squash, and
Elijah's PPF
Aneesha's PPF
(?)
Aneesha has an absolute advantage in the production of maize, and Aneesha has an absolute advantage in the production of squash.
2…
Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of maize and squash each farmer can
produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the
land and squash on the rest.
Elijah
Aneesha
SQUASH (Pounds)
On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Aneesha's PPF.
160
144
128
112
96
80
64
48
32
16
0
Maize
Squash
(Pounds per acre) (Pounds per acre)
6
6
20
5
0
80 160 240 320 400 480 560 640 720 800
MAIZE (Pounds)
Elijah's PPF
Elijah's opportunity cost of producing 1 pound of squash is
squash is
pounds of maize. Because Elijah has a
comparative advantage in the production of squash, and
Aneesha's PPF
has an absolute advantage in the production of maize, and
?
has an absolute advantage in the production of squash.
pounds of maize,…
Bob and Cho are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per
year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the
rest.
Corn
Rye
(Bushels per acre)
(Bushels per acre)
Bob
10
5
Cho
40
8
On the following graph, use the blue line (circle symbol) to plot Bob's production possibilities frontier (PPF), and use the purple line (diamond symbol)
to plot Cho's PPF.
200
Bob's PPF
180
160
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F4
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F5
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Chapter 2 Solutions
Macroeconomics (7th Edition)
Ch. 2 - Prob. 1TCCh. 2 - Prob. 2TCCh. 2 - Prob. 2.1.1RQCh. 2 - Prob. 2.1.2RQCh. 2 - Prob. 2.1.3RQCh. 2 - Prob. 2.1.4PACh. 2 - Prob. 2.1.5PACh. 2 - Prob. 2.1.6PACh. 2 - Prob. 2.1.7PACh. 2 - Prob. 2.1.8PA
Ch. 2 - Prob. 2.1.9PACh. 2 - Prob. 2.1.10PACh. 2 - Prob. 2.1.11PACh. 2 - Prob. 2.1.12PACh. 2 - Prob. 2.1.13PACh. 2 - Prob. 2.1.14PACh. 2 - Prob. 2.2.1RQCh. 2 - Prob. 2.2.2RQCh. 2 - Prob. 2.2.3PACh. 2 - Prob. 2.2.4PACh. 2 - Prob. 2.2.5PACh. 2 - Prob. 2.2.6PACh. 2 - Prob. 2.2.7PACh. 2 - Prob. 2.2.8PACh. 2 - Prob. 2.2.9PACh. 2 - Prob. 2.2.10PACh. 2 - Prob. 2.2.11PACh. 2 - Prob. 2.2.12PACh. 2 - Prob. 2.2.13PACh. 2 - Prob. 2.2.14PACh. 2 - Prob. 2.2.15PACh. 2 - Prob. 2.3.1RQCh. 2 - Prob. 2.3.2RQCh. 2 - Prob. 2.3.3RQCh. 2 - Prob. 2.3.4RQCh. 2 - Prob. 2.3.5RQCh. 2 - Prob. 2.3.6RQCh. 2 - Prob. 2.3.7PACh. 2 - Prob. 2.3.8PACh. 2 - Prob. 2.3.9PACh. 2 - Prob. 2.3.10PACh. 2 - Prob. 2.3.11PACh. 2 - Prob. 2.3.12PACh. 2 - Prob. 2.3.13PACh. 2 - Prob. 2.3.14PACh. 2 - Prob. 2.3.15PACh. 2 - Prob. 2.3.16PA
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