Brief Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN: 9781285165929
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 3.2, Problem 2QQ
To determine
Crusoe’s absolute and
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
READ THOROUGHLY!
Molly is Person A; John is person B
2 people from the same house do two things: they give rides and deliver meals
Molly can provide 4 taxi rides or 2 meal deliveries in an hour. John can provide 5 taxi rides or 4 meal deliveries in an hour.
Who has the absolute advantage in the provision of taxi rides? Who has the comparative advantage in the provision of taxi rides?
Absolute advantage: Person A Comparative advantage: Person A
Absolute advantage: Person B Comparative advantage: Person A
Absolute advantage: Person A Comparative advantage: Person B
Absolute advantage: Person B Comparative advantage: Person B
What is a price of taxi rides (in terms of meal deliveries) at which BOTH Molly and John will be better o" by specialization and trade?
Alice can collect 10 coconuts or catch 1 fish per hour. Hs friend Emma can gather 30 coconuts or catch 2 fish per hour. What is alice opportunity cost of catching 1 fish? What is Emma's? Who has an absolute advantage in catching fish? Who has a comparative advantage in catching fish?
• Robinson Crusoe can gather 10 coconuts or catch 1 fish per hour. His friend Friday can gather 30 coconuts or catch 2 fish per hour. What is Crusoe's opportunity cost of catching one fish? What is Friday's? Who has an absolute advantage in catching fish? Who has a comparative advantage in catching fish?
Chapter 3 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
Knowledge Booster
Similar questions
- Bob and Erik are both experienced in making pizzas and burgers. In one day, Bob can make 8 pizzas or 32 burgers. With the same effort and in the same day, Erik can make 12 pizzas or 36 burgers. Who has the absolute advantage in making pizzas and who has the absolute advantage in making burgers? Who has the comparative advantage in each activity? Show your derivations. According to the principle of comparative advantage, in which activity should each person (Bob and Erik) specialize in order to gain from trade? 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.arrow_forwardMIKE & DEBBY Mike Debby 60 minutes 45 minutes Vacuum room 30 minutes 45 minutes Wash Dishes 1. What is Mike's opportunity cost of vacuuming in terms of washing dishes What is Mike's opportunity cost of washing dishes in terms of vacuuming? What is Debbie's opportunity cost of vacuuming in terms of washing dishes? What is Debbie's opportunity cost of washing dishes in terms of vacuuming? Who has the absolute advantage in vacuuming? Who has the absolute advantage in washing dishes? Who has the comparative advantage in vacuuming? Who has the comparative advantage in washing dishes? Who should do which chore and why? 2. 3. 4. 5. 6. 7. 8. 9.arrow_forwardJared takes 10 minutes to wash dishes and 20 minutes to write a paper. Jason takes 10 minutes to wash dishes and 30 minutes to write a paper. Which of the following statements is correct? Jared has a comparative advantage in writing a paper. O Jared has absolute advantage in writing the paper. Jared has a comparative advantage in washing dishes. O Jared has absolute advantage in washing the dishes.arrow_forward
- Tina can allocate her 8-hour day between baking and cooking. Each hour devoted to baking yields 2 cakes whereas each hour spent cooking produces 4 plates of food. Tina's neighbor, Ingrid, can produce 3 cakes or 4 plates of food per hour. Who has the absolute advantage in the production of cakes? Who has absolute advantage in the production of food? Who has a comparative advantage in the production of cakes? Who has a comparative advantage in the production of food? What is the opportunity cost for food?arrow_forwardSuppose there are two bakers in town: Sarah and Amy. Sarah can bake 4 loaves of bread or 8 pies in one day. Amy can bake 6 loaves of bread or 2 pies in one day. Please do the following: (a) Calculate the opportunity cost for both Sarah and Amy for baking pies and bread (b) Draw both Sarah and Amy's PPF curve (c) Who has an absolute advantage in baking bread? In baking pies? (d) Who has a comparative advantage in baking bread? In baking pies? (e) Determine a specific trade (i.e. give me numbers) that would make both Sarah and Amy better off.arrow_forwardRandy and Frank are both landscapers. Randy can mow 12 lawns per day or prune 15 trees. Frank can mow 16 lawns per day or prune 24 trees. Randy and Frank each work 240 days per year. a. Determine who has the absolute advantage at each task, what their respective opportunity costs are for mowing a lawn, and who has comparative advantage in each task. (Click to select) (Click to select) The opportunity cost of mowing a lawn for Randy is The opportunity cost of mowing a lawn for Frank is (Click to select) ✓has a comparative advantage in mowing lawns. (Click to select) has a comparative advantage in pruning trees. b. Assuming that only one of the tasks is performed, then together Randy and Frank can service a maximum of lawns or trees each year. ✓has an absolute advantage in mowing lawns. ✓has an absolute advantage in pruning trees. trees. trees. c. If each landscaper fully specializes according to his comparative advantage, then the maximum number of lawns that can be mowed annually is…arrow_forward
- Given Ted can wax 4 cars per day or wash 2 cars per day and Tom can wax 3 cars per day or wash 1 car per day. What is each man’s opportunity cost of waxing a car? Who has an absolute advantage of waxing cars? Who has a comparative advantage of waxing cars?arrow_forwardRobinson Crusoe can gather 10 coconuts or catch 1 fish per hour. His friend Friday can gather 30 coconuts or catch 2 fish per hour. What is Crusoe’s opportunity cost of catching 1 fish, What is Friday’s, Who has an absolute advantage in catching fish, Who has a comparative advantage in catching fish?arrow_forwardTed can wax a car in 25 minutes or wash a car in 75 minutes. Ishana can wax a car in 20 minutes or wash a car in 40 minutes. What is each person's opportunity cost of washing a car? Instructions: Enter your responses rounded to one decimal place. Ted's opportunity cost of washing one car is wax jobs. Ishana's opportunity cost of washing one car is Who has a comparative advantage in washing cars? wax jobs.arrow_forward
- Put ECG Machines on the vertical axis and Defibrillators on the horizontal axis. Draw the production possibilities curve for Plant R. On a separate graph, draw the production possibilities curve for Plant S. Which plant has a comparative advantage in ECG Machines? In Defibrillators? Now draw the combined curves for the two plants. Suppose the firm decides to produce 100 Defibrillators. Where will it produce them? How many ECG Machines will it be able to produce? Where will it produce the ECG Machines?arrow_forwardRobinson Crusoe can gather 10 coconuts or catch 1 fish per hour. Hs friend Friday can gather 30 coconuts or catch 2 fish per hour. What is QuickQuiz Crusoe's opportunity cost of catching 1 fish? What is Friday's? Who has an absolute advan- tage in catching fish? Who has a comparative advantage in catching fish?arrow_forwardThe following table shows the amount of days to produce one unit of beans or one unit of planes. Use the information to match the person with the advantages that follow. Вeans Planes Alpha 50 9 Beta 5 7 Has the absolute advantage in planes Has the absolute advantage in beans 1. Alpha Has the comparative advantage in planes 2. Beta Has the comparative advantage in beans > > >arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning