apmicro_chapter2_practice2

As the manager at a local florist, you supervise two employees, Anita and Jerome. There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and it takes her 40 minutes to make one delivery. It takes Jerome 10 minutes to finish one floral arrangement and it takes him 30 minutes to make one delivery. a. Who has a comparative advantage in floral arrangements? What about deliveries? b. Suppose, initially, Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day doing deliveries. If you changed their tasks so that each individual did nothing but the task for which they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?

Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. ZucchiniWatermelon(Pounds per acre)(Pounds per acre)Elijah123Aneesha186

Discussion 11 Comparative Advantage Example Assume that there are two countries, Country A which earns $5,000 per capita GDP, and Country 8, which earns $50.000 per capita GOP. Using Country A and Country B and two products that you choose, thoroughly and clearly explain an example of how these countries can gain from trade pursuant to the doctrine of Comparative Advantage.

Question 1 Consider the PPF for US and China as shown below in the diagram. Quantity of Computers 20 10 5 U.S. I 50 China 100 Quantity of Shirts a) What is the opportunity cost for producing each of these goods in each country? (Make a table) Which country has a comparative advantage in the production of shirts? Why? b) d) c) Which country has a comparative advantage in the production of computers? Why? What should be the pattern of specialization and trade for these countries? Indicate the Specialization points for each country, and draw the TOT line on their respective PPFs. e) Has Trade made each country better off? Explain.

***Please look at the screenshot for graphs*** Fill in the charts below with values based on the two Production Possibilities Frontiers above. Motor Vehicle Production in the United States (in millions) Cars Trucks                                0                    4                      0     Motor Vehicle Production in Mexico (in millions) Cars Trucks                             0                              2                           0   Which country has the absolute advantage in producing cars?  Which country has the absolute advantage in producing trucks?  Which country has the comparative advantage in producing cars?  Which country has the comparative advantage in producing trucks?  Should these two countries trade?  Why or Why not?

What is the relationship between production costs and comparative advantage?   Group of answer choices   Comparative advantage considers, “How much am I giving up to produce this good in this country?”   Comparative advantage identifies the good for which the producer’s absolute advantage is relatively smaller.   Comparative advantage identifies where the producer’s absolute productivity disadvantage is relatively larger.   Comparative advantage happens when the production costs for both trading partners are the same.

Comparative and absolute advantage Antonio and Caroline are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of alfalfa and barley each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing alfalfa or barley or to produce alfalfa on some of the land and barley on the rest.   Alfalfa Barley (Bushels per acre) (Bushels per acre) Antonio 40 8 Caroline 28 7   On the following graph, use the blue line (circle symbol) to plot Antonio's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Caroline's PPF.   Antonio's PPFCaroline's PPF01002003004005006007008009001000200180160140120100806040200BARLEY (Bushels)ALFALFA (Bushels)   _______  has an absolute advantage in the production of alfalfa, and ______  has an absolute advantage in the production of barley.   Antonio's opportunity cost of producing 1 bushel of barley is…

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Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Hamburgers (in tons) Mexico Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 27 15 10 20 18 9 10 30 Which country has an absolute advantage in producing tacos? The United States. Which country has a comparative advantage in producing tacos? Mexico Suppose the United States is currently producing 20 tons of hamburgers and 9 tons of tacos and Mexico is currently producing 4 tons of hamburgers and 5 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries combined (enter a numeric response using an integer)

Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below United States Mexico Tacos (in tons) 180 120 60 Hamburgers (in tons) Tacos (in tons) 150 100 50 Hamburgers (in tons) 100 200 10 20 30 300 Which country has an abrolute advantage in producing tacos? The United States Which country has a comparative advantage in producing tacos? Mexico Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 20 tons of hamburgers and 50 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries combined (enter a numenc response using an integear) I don't understand the bottom part I got it wrong twice. After I click next there is also…

1) This question looks at the theory of comparative advantage. Imagine a world in which there are just two countries, F and G, and just two goods, X and Y.  Consider the following six situations. Each one shows that the two countries can produce for a given number of resources. Assume constant costs. In each case give the (pre-trade) opportunity cost of X in terms of Y. (a) Country F: 10 units of X or 20 units of Y. 1X = ................. Y Country G: 10 units of X or 10 units of Y. 1X = ................. Y (b) Country F: 12 units of X or 12 units of Y. 1X = ................. Y Country G: 6 units of X or 8 units of Y. 1X = ................. Y (c) Country F: 8 units of X or 8 units of Y. 1X = ................. Y Country G: 10 units of X or 10 units of Y. 1X = ................. Y (d) Country F: 20 units of X or 5 units of Y. 1X = ................. Y Country G: 18 units of X or 2 units of Y. 1X = ................. Y (e) Country F: 10 units of X or 8 units of Y. 1X = ................. Y…

The following table describes the number of yards of cloth and barrels of wine that can be produced with a week’s worth of labor in England and Portugal. Assume that no other inputs are needed.                                                   In England                                        In Portugal Cloth                                            8 yards                                             12 yards Wine                                            2 barrels                                           6 barrels d.Which country has an absolute advantage in the production of which good(s)? Which country has a comparative advantage in the production of which good(s)? e.If the countries start trading with each other, which country will specialize and export which good? f.What can be said about the price at which trade will take place?

1) Write a clearly positive economic statement referring to comparative advantage.Explain why is it a positive statement.

QUESTION 5 Question 3b- 2 The Heckscher-Ohlin theory explains comparative advantage as the result of differences in countries: O Economies of large-scale production. O Relative abundance of various resources. O Relative costs of labour. O Transportation costs.

The following table shows how many tonnes of dairy products and beef products can be produced in Country 1 and Country 2 with one unit of equivalent resources. Country 1 Country 2 Dairy Products (tonnes) 15 15 Beef Products (tonnes) 5 25 ..... a. Which country has an absolute advantage in dairy products? In beef products? Explain. Whoever is able to produce absolute advantage of producing that product. advantage in dairy production. production. with the same amount of resources has the has the absolute has the absolute advantage in beef A *****

Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. Part 2 France Germany Wine​ (Bottles) Cheese​ (Pounds) Wine​ (Bottles) Cheese​ (Pounds) 0 8 0 25 1 6 1 20 2 4 2 15 3 2 3 10 4 0 4 5     5 0 Part 3 Who has the comparative advantage in producing wine and who has the comparative advantage in producing​ cheese? Part 4   A. Neither has a comparative advantage producing wine or cheese.   B. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese.   C. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine.   D. France has a comparative advantage producing wine and cheese.   E. Germany has a comparative advantage producing wine and cheese. Part 5 Suppose that France is…

(Table: Fazio and Gabriella's opportunity cost) The table provides data on how long it takes Fazio and Gabriella each to learn to play a particular new song on the piano and to complete a given person's tax return. Use the data to answer the question. Fazio Gabriella Table: Fazio and Gabriella Hours it takes to: Learn to play a new song 18 10 Complete a tax return 9 8 Which statement explains who has a comparative advantage in learning a new song? O Fazio because he learns a new song more quickly than Gabriella, O Gabriella because she can learn the song more quickly than Fazio. Fazio because he gives up fewer completed tax returns when he learns a new song. O Gabriella because she gives up fewer completed tax returns when she learns a new song.

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2. An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in 60 minutes, while an average worker in Peru can produce an ounce of soybeans in 50 minutes and an ounce of coffee in 75 minutes. a) Who has the absolute advantage in coffee? Explain. b) Who has the comparative advantage in coffee? Explain. c) If the two countries specialize and trade with each other, who will import coffee? Explain. d) Assume that the two countries trade and that the country importing coffee trades 2 ounces of soybeans for 1 ounce of coffee. Explain why both countries will benefit from this trade.

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Comparative advantage is an important concept to explain how economies work. Because of comparative advantage, it is possible for people to use their skills and time productively even if they are not the best at something. To help illustrate the usefulness of this concept: Think of an example (work, family chores, school projects, etc.) where you might not have an absolute advantage at something, but you do have a comparative advantage. By this, I mean that you might not be the fastest or the best at a particular job. Other employees, family members, etc. may do the job quicker or better than you could. But their opportunity cost was high, meaning they had something more necessary for them to do, so it made sense for you to do this job. Explain how this was an example of you having a comparative advantage but not an absolute advantage. Did you (and the others in your example) specialize according to comparative advantage? What job(s) did you do? What did other people do? Did this…