1. Country A and country B both produce toasters and sweaters. In country A each worker in a day can produce either 5 toasters or 20 sweaters. In country B each worker in a day can produce either 3 toasters of 18 sweaters. Each country has constant opportunity cost of production and each has 100 workers. Enter whole numbers in each blank. Initially the two countries do not trade. Country A allocates 60 workers to toaster production and 40 workers to sweater production so they produce a total of toasters and sweaters. Country B allocates 60 workers to toaster production and 40 workers to sweater production so they produce a total of toasters and sweaters. The two countries decide to completely specialize and then engage in trade. With specialization country A will produce toasters and sweaters, and country B will produce toasters and sweaters. The two countries decide to trade 190 toasters in exchange for 950 sweaters. After trade country A will consume toasters and sweaters, and country B will consume toasters and sweaters. After specialization and exchange, country A is able to consume more toasters and more sweaters than it could before trade. Country B is able to consume more toasters and more sweaters after specialization and exchange than it could before specialization and exchange. 2. Suppose students like to eat pepperoni pizza, bean and rice burritos, and hamburgers (made from beef) from the food establishments on campus. Which of the following is most likely to increase the quantity of hamburgers sold? a. A second pizza shop opens up on campus b. Students are trying to save money so they decide to pack their lunch more often c. The price of cheese increases d. More students prefer to eat a vegetarian diet
1. Country A and country B both produce toasters and sweaters. In country A each worker in a day can produce either 5 toasters or 20 sweaters. In country B each worker in a day can produce either 3 toasters of 18 sweaters. Each country has constant
Initially the two countries do not trade. Country A allocates 60 workers to toaster production and 40 workers to sweater production so they produce a total of toasters and sweaters. Country B allocates 60 workers to toaster production and 40 workers to sweater production so they produce a total of toasters and sweaters.
The two countries decide to completely specialize and then engage in trade. With specialization country A will produce toasters and sweaters, and country B will produce toasters and sweaters. The two countries decide to trade 190 toasters in exchange for 950 sweaters. After trade country A will consume toasters and sweaters, and country B will consume toasters and sweaters.
After specialization and exchange, country A is able to consume more toasters and more sweaters than it could before trade. Country B is able to consume more toasters and more sweaters after specialization and exchange than it could before specialization and exchange.
2. Suppose students like to eat pepperoni pizza, bean and rice burritos, and hamburgers (made from beef) from the food establishments on campus. Which of the following is most likely to increase the quantity of hamburgers sold?
a. A second pizza shop opens up on campus
b. Students are trying to save money so they decide to pack their lunch more often
c. The price of cheese increases
d. More students prefer to eat a vegetarian diet
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