Microeconomics (Book Only)
12th Edition
ISBN: 9781285738307
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 2, Problem 3VQP
(a)
To determine
(b)
To determine
Comparative advantage of Person B.
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Use the graph to answer the following question:
Plant R and Plant S both produce radios and calculators. Which of the following statements is most true?
A) Plant R has the comparative advantage to produce radios but not calculators.
B) Plant R has the comparative advantage to produce both goods.
C) Plant S has the comparative advantage to produce radios but not calculators.
D) Plant S has the absolute advantage to produce both calculators and radios.
Nettie can produce either 8 cupcakes or 4 hamburgers. Becky can produce either 4
cupcakes or 8 hamburgers. Suppose that Nettie and Becky each specialize in the
production of the good for which they have a comparative advantage and decide to trade.
The terms of trade are 1 cupcake for 1 hamburger. After trade, how many hamburgers will
Nettie consume if Becky consumes 4 hamburgers? How many cupcakes will Becky
consume if Nettie consumes 4 cupcakes?
Multiple Choice
Nettie consumes 4 hamburgers. Becky consumes 4 cupcakes
Nettie consumes 0 hamburgers, Becky consumes O cupcakes
In one day, Dahyun can produce 20 cakes or 40 brownies, and Sana can produce 25 cakes or 125 brownies. Suppose Dahyun and Sana each specialize in producing the good in which they have a comparative advantage.
Select the statement that is TRUE for the following terms of trade: trade 1 cake for 7 brownies
a
Dahyun loses but Sana gains
b
Dahyun gains but Sana loses
c
Dahyun gains but Sana is neither better nor worse off (i.e. she is indifferent)
d
Both Dahyun and Sana are better off
Chapter 2 Solutions
Microeconomics (Book Only)
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1VQPCh. 2 - Prob. 2VQPCh. 2 - Prob. 3VQPCh. 2 - Prob. 4VQPCh. 2 - Prob. 5VQPCh. 2 - Prob. 1QP
Ch. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QPCh. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNG
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