Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 2, Problem 4PA
Sub part (a):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (b):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (c):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (d):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
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Barbara and Antoni each work 8 hours a day producing lemonade and pizza. In eight
hours, Antoni can produce 400 pints of lemonade or 200 pizzas. In the same amount
of time, Barbara can produce 450 pints of lemonade or 300 pizzas. Currently, Antoni
decides to produce 200 pints of lemonade and 100 pizzas, and Barbara decides to
produce 180 units of each good.
Draw the production possibilities frontiers for Barbara and Antoni, with pizza on the
x-axis. Include current production points.
In your own words, explain absolute advantage. Who has absolute advantage in
lemonade production? In pizza production?
In your own words, explain comparative advantage.
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Find Barbara's and Antoni's opportunity cost of producing pizza in terms of
lemonade. Who has a comparative advantage?
, Find Barbara's and Antoni's opportunity cost of producing lemonade in terms of
pizza. Who has a comparative advantage?
For…
Suppose that Paulie and Vinny each can produce ice cream or t-shirts. The table shows the quantity of cach good that Paulic
and Vinny cach can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round
all answers to two decimal places.
Ice cream (cups)
T-shirts (quantity)
Paulie
3.00
18.00
Vinny
10.00
13.00
a. What is Paulie's opportunity cost of producing a cup of
ice cream?
Paulic's opportunity cost:
t- shirts
b. What is Vinny's opportunity cost of producing a t-shirt?
Vinny's opportunity cost:
cups of ice cream
c. Paulie has a comparative advantage in
and Vinny has a comparative advantage in
Please select the economic term that is best described by each statement.
People have limited resources.
scarcity
tradeoffs
entrepreneurship
recession
margins
business cycle
Everything you do requires giving up something (time, money, etc.).
recession
tradeoffs
hudtin
Suppose that Cassie can produce 10 pounds of tuna per hour or 20 pounds of apple per hour, and Samantha can produce 20 pounds of tuna per hour or 10 pounds of apples per hour. Cassie and Samantha both want 80 pounds of tuna and 80 pounds of apple per day.
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Chapter 2 Solutions
Principles of Microeconomics (MindTap Course List)
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