EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
7th Edition
ISBN: 8220103455312
Author: Mankiw
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 1QCMC
To determine
The absolute advantage .
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Sue
Tom
Good A
10
4
Select one:
Good B
15
5
As shown in the table above, Sue and Tom each can produce two different types of goods.
For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If
she only produces Good B, then she can produce 15 units of Good B per day.
For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she
only produces Good B, then she can produce 5 units of Good B per day.
Which of the following statement is correct about comparative advantage?
O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a
comparative advantage over Tom in the production of Good B
O b.
Tom has a comparative advantage over Sue in both tasks
O c.
Sue has a comparative advantage over Tom in both tasks
O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a
comparative advantage over Sue in the production of Good B
Table 1
Minnie
Hats
Umbrellas
Mickey
50
40
10
5
Table 1 shows the output per week of two people, Minnie and Mickey. They can either devote
their time to making hats or making umbrellas.
1) Refer to Table 1. Which of the following statements is true?
A) Mickey has an absolute advantage in making both products.
B) Minnie has an absolute advantage in making both products.
C) Minnie has an absolute advantage in making hats and Mickey in making umbrellas.
D) Minnie has an absolute advantage in making umbrellas and Mickey in making hats.
2) Refer to Table 1. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella
B) 1/4 of an umbrella
C) 4 umbrellas
D) 10 umbrellas
3) Refer to Table 1. What is Mickey's opportunity cost of making a hat?
A) 1/10 of an umbrella
B) 1/5 of an umbrella
C) 5 umbrellas
D) 10 umbrellas
4) Refer to Table 1. Which of the following statements is true?
A) Minnie has a comparative advantage in making both products.
B) Mickey has a comparative advantage in…
Once again, In an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow
1 Lawn. Who has the comparive advantage in car washing and who has the camparative advantage in lawn mowing?
a. Mateo in washing, Tyler in mowing
b.Tyler in washing, Mateo in mowing.
c. Mateo in washing, nither in mowing.
d. Tyler in washing, neither in mowing.
Chapter 3 Solutions
EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
Knowledge Booster
Similar questions
- Farmer Jones and Farmer Smith graze their cattle on the same field. If there are 20 cows grazing in the field each cow produces $4000 of milk. If there are more cows in the field, then each cow produces can eat less grass and the milk production falls. With 30 cows on the field each produces $3000 of milk, with 40 cows each produces $2000 of milk . Cows cost $1000 a piece. Assume that Farmer Jones and farmer Smith can buy either 10 cows or 20 cows, find out the Dominant Strategy of Farmer Jones and express the same in formal language. I want to see all the steps.arrow_forward1. Assume you are stranded on an island with another person. The table below gives the maximum amounts that you and the other person can produce per day, if you devote all your resources to the production of that one good. Further, assume both you and the other person face constant opportunity costs in production. You Other Person Food (lbs.) 30 40 Good Water (gallons) 90 150 a. What is the pattern of absolute advantage? In other words, who has absolute advantage in food production? In water production?arrow_forward3. Jennifer and Dave need to figure out how to divide the chores between. Dave can wash 6 loads of dishes or 4 loads of laundry per week. Jennifer can wash 6 loads of dishes or 8 loads of laundry per week. a. Does either one of them have an absolute advantage in both chores? b. What type of advantage determines who should "produce" a good or service? c. Calculate the opportunity cost for Jennifer and Dave to do 1 load of dishes or 1 load of laundry and report your results. d. Who should do the dishes and who should do the laundry?arrow_forward
- 2. Comparative and absolute advantage Felix and Janet are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest. Rye Corn (Bushels per acre) (Bushels per acre) Felix 40 8 Janet 28 7 On the following graph, use the blue line (circle symbol) to plot Felix's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Janet's PPF. (?) 200 180 160 140 120 100 80 60 40 20 0 0 100 200 300 400 500 600 700 800 900 1000 RYE (Bushels) Felix has an absolute advantage in the production of rye, and Felix has an absolute advantage in the production of corn. Felix's opportunity cost of producing 1 bushel of corn is bushels of rye, whereas Janet's opportunity cost of producing 1 bushel of corn is bushels of rye. Because Felix has a higher…arrow_forward2. Comparative and absolute advantage Larry and Megan 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) Larry 40 8 Megan 28 7 On the following graph, use the blue line (circle symbol) to plot Larry's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Megan's PPF. (?) 200 180 160 140 120 100 80 60 40 20 0 has an absolute advantage in the production of rye. bushels of corn, whereas Megan's opportunity cost of producing 1 bushel of rye is opportunity cost of producing rye than Megan, has a comparative has a comparative advantage in the production of corn. RYE (Bushels) 0 100 200 300 400 500 600 700 800 900 1000 CORN (Bushels) has an absolute advantage in the production of…arrow_forward6. Given that Nathan has 10 acres and can grow 15 bales of hay or 40 bushels of corn on anacre, while Simon has 10 acres and can grow 20 bales of hay or 35 bushels of corn per acre a. What is the maximum amount of corn and hay that they can jointly produce?b. Does Nathan have a comparative advantage in growing hay?c. Does Simon have an absolute advantage in growing hay?d. What is the opportunity cost to Nathan of one bale of hay?arrow_forward
- . Diego and Darnell are roommates. They spend mostof their time studying (of course), but they leavesome time for their favorite activities: making pizzaand brewing root beer. Diego takes 4 hours to brewa gallon of root beer and 2 hours to make a pizza.Darnell takes 6 hours to brew a gallon of root beerand 4 hours to make a pizza.a. What is each roommate’s opportunity cost ofmaking a pizza? Who has the absolute advantagein making pizza? Who has the comparativeadvantage in making pizza?b. If Diego and Darnell trade foods with each other,who will trade away pizza in exchange for rootbeer?c. The price of pizza can be expressed in terms ofgallons of root beer. What is the highest price atwhich pizza can be traded that would make bothroommates better off? What is the lowest price?Explain.arrow_forwardA worker in country A can produce either 5 computers or 45 tons of rice, while a worker in country B canproduce either 7 computers or 42 tons of rice. a. Graph the production possibilities curve for each country. On which point of the curve would eachcountry produce if the workers spent half of their time producing each good? b. Which country has absolute advantage? Which country has comparative advantage? In theproduction of rise Country A absolute advantage c. If there was trade, which country would specialize in the production of rice? d. At what price of computers would the countries agree to trade?arrow_forwardThe table provides information about the production possibilities of a firm that produces bed linens. Quilts (per hour) Possibility A B C Pillows (per hour) 0 8 and and and 16 12 0 Draw points that show the three possibilities defined by the table. Label them A. B. and C. Draw the firm's PPF by connecting the points. Label it. Along this PPF, the quantities of A. all goods other than pillows and quilts are increasing OB. all goods other than pillows and quilts remain constant OC. pillows and quilts are either increasing or decreasing, so there is no scarcity OD. all goods other than pillows and quilts are decreasingarrow_forward
- 2. Comparative and absolute advantage Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and com on the rest. Rye Corn (Bushels per acre) (Bushels per acre) Gilberto 12 Juanita 18 On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF. 120 108 Gilberto's PPF 96 84 72 Juanita's PPF 60 48 36 24 12 60 120 180 240 300 360 420 480 540 600 RYE (Bushels) - has an absolute advantage in the production of rye, and v has an absolute advantage in the production of corn. Gilberto's opportunity cost of producing 1 bushel of corn is bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn is bushels of rye. Because…arrow_forwardOlivia and Tura are sisters, whose parents require them to do four hours of househoid chores per week. Both children can perfom two chores walking the family dog and watering the household planta The following describe each child's productivity Production per Hour of Work Child of Dog Walks 4 of Plants Watered. Olivia Tara Please answer each of the following questions, indicating the question numbers in your answer Which child, if any, has absolute advantage in dog walks? Which child if any has absolute advantage in watering plants? (Olivia, Tara, Both, Neither) has absolute advantage in dog walks; (Olivia, Tara, Both, Neither) has absolute advantage in watering plants.arrow_forwardMark can cook dinner in 30 minutes and wash thelaundry in 20 minutes. His roommate takes half aslong to do each task. How should the roommatesallocate the work?a. Mark should do more of the cooking based on hiscomparative advantage.b. Mark should do more of the washing based on hiscomparative advantage.c. Mark should do more of the washing based on hisabsolute advantage.d. There are no gains from trade in this situation.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning