Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 26.2, Problem 3QQ
To determine
Opportunity Cost .
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Students have asked these similar questions
Time it takes to produce one car | Time
(hours)
it
takes
to
produce one Laptop
(hours)
Canada
2,000
4
China
3,200
8
Which good will China export and which good will Canada export?
O Canada will export cars and China will export laptops.
O Canada will export laptops and China will export cars.
O China will export laptops and cars. Canada will export neither goods.
O Canada will export laptops and cars. China will export neither goods.
A typical Australian farmer can produce 8000 lbs of wheat or 500 lbs of potatoes per year. A typical
Canadian farmer can produce 5000 lbs of wheat or 400 lbs of potatoes per year. Who has the comparative
advantage in producing potatoes?
a. Canada
b. Australia
explain!!!
Which of the following follows when a nation opens up for trade and starts exporting a good?
A. The price that domestic manufacturers of the good are paid declines.
B. Domestic consumers of the good benefit more than domestic producers of the good, who suffer losses.
C. Domestic producers of the good profit more than domestic consumers of the good lose.
D. The cost of the commodity for domestic consumers lowers.
Chapter 26 Solutions
Microeconomics
Ch. 26.2 - Prob. 1QQCh. 26.2 - Prob. 2QQCh. 26.2 - Prob. 3QQCh. 26.2 - Prob. 4QQCh. 26 - Prob. 1DQCh. 26 - Prob. 2DQCh. 26 - Prob. 3DQCh. 26 - Prob. 4DQCh. 26 - Prob. 5DQCh. 26 - Prob. 6DQ
Ch. 26 - Prob. 7DQCh. 26 - Prob. 8DQCh. 26 - Prob. 9DQCh. 26 - Prob. 10DQCh. 26 - Prob. 11DQCh. 26 - Prob. 12DQCh. 26 - Prob. 13DQCh. 26 - Prob. 14DQCh. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQCh. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 1PCh. 26 - Prob. 2PCh. 26 - Prob. 3PCh. 26 - Prob. 4P
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- Argentina can produce 2 pounds of coffee OR 1 bottle of wine. Brazil can produce 5 pounds of coffee OR 1 bottle of wine. Which country has a comparative advantage in the production of wine?Ā Ā a. both Argentina and Brazil. b. Argentina. c. neither Argentina nor Brazil. d. Brazil.arrow_forward1. Consider the countries of Canada and Mexico. In one month, Canada can produce a maximum of 150 wheat or 200 barley. Mexico can also maximize production of 150 wheat, but their maximum barley output is 150. a. Assuming each country devotes half of its resources to growing each crop, calculate the production level of each crop in each country and overall production.Ā b. Determine comparative advantage in each and show how you found this.Ā c. Calculate production levels in each country of each crop under specialization and also overall production. d. How much of each crop was gained by specialization?Ā 2. Using cheddar cheese, explain in two sentences or fewer the following:Ā a. Income Effectb. Substitution Effectc. Law of Diminishing Marginal Returnsarrow_forwardExercise: production per unit of labour: US: Wheat 300, Beef 100 Argentina: Wheat 20, Beef 20 a. Does either country have an absolute advantage in the production of wheat or beef? Explain b. What is the opportunity cost of wheat in each country? c. What is the opportunity cost of beef in each country? d. Analyze comparative advantage and opportunities for trade between the U.S. and Argentina.arrow_forward
- Each country should specialize in producing that good for which it a. has a comparative advantage b. has an absolute advantage c. it has a higher opportunity costarrow_forwardUsing the numbers in the table, determine which country has a comparative advantage in producing each product. Output per Hour of Work Switzerland Canada Smartphones 8 5 Which of the following statements is true? A. The opportunity cost for Canada to produce one Smartphone is 0.60 Fitness Bracelet. B. The opportunity cost for Switzerland to produce one Fitness Bracelet is 1.25 Smartphones. OC. The opportunity cost for Switzerland to produce one Smartphone is 0.80 Fitness Bracelet. OD. The opportunity for Canada to produce one Smartphone is 1.67 Fitness Bracelets. Fitness Bracelets 10 3arrow_forwardEconomists argue for free trade in import markets because importing goods decreases total surplus. no one is made worse off by importing goods. all consumers and producers benefit from importing goods. O the gains to the U.S. producers outweigh the losses to the U.S. consumers the gains to the U.S. consumers outweigh the losses to the U.S. producersarrow_forward
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