Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 3, Problem 4SPPA
To determine
Graphical representation of production possibilities.
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Riley and Chad run a water sports business in Noosa. They have to wash the surfboards/kayaks each time they are used and need to decide who should wash what to minimise opportunity cost.
Surfboards
(quantity/hr)
Kayaks
(quantity/hr)
Riley
45
30
Chad
30
40
Which of the following statements are true:
Chad should specialise in washing kayaks.
Riley has a comparative advantage in washing surfboards.
Riley's opportunity cost of washing 1 kayak is washing 1.5 surfboards.
Riley should specialise in washing surfboards because he has an absolute advantage in washing surfboards.
Marlaria can be controlled
The world health organization malaria chief says that it is too costly to try to fully eradicate the disease. He says that by using nets, medicine, and DDT it is possible to eliminate 90% of malaria cases. But to eliminate 100% of cases would be extremely costly.
4. Make a graph of the production possibilities frontier with malaria cases on the X-axis and other goods and services on the Y- Axis.
( compatible with Microsoft word would be ideal )
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Country A Country B
No. of pencils 100 50
produced
pounds of paper
produced 150 150
a)Country A and Country B can both produce paper and pencils, according to the table above and using the same amount of time and resources. Which country has the absolute advantage in producing each good?
choices
Country A has absolute advantage in pencils, but neither country has absolute advantage in paper
Country A has absolute advantage in both
Country B has absolute advantage in both
Country B has absolute advantage in paper, but Country A has absolute advantage in pencils
Neither country has absolute advantage in either good
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Foundations of Economics (8th Edition)
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