Brazil and Colombia can both produce either bananas or coffee. Brazil can produce either 16 pounds of co and 0 pounds of coffee. Colombia can produce either 20 pounds of coffee and 0 pounds of bananas or 4 Bananas (pounds) Coffee (pounds) Country Brazil 64 Colombia 40 20 The opportunity cost of producing 1 pound of bananas for Brazil is O 16 O 1 O 0.25 16 O 48 pounds of coffee.
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Brazil and Colombia can both produce either bananas or coffee. Brazil can produce either 16 pounds of co and 0 pounds of coffee. Colombia can produce either 20 pounds of coffee and 0 pounds of bananas or 4 Bananas (pounds) Coffee (pounds) Country Brazil 64 Colombia 40 20 The
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- Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.3. Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a) What is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a bushel of wheat in Canada? Explain the relationship between the opportunity costs of the two goods. b) Draw Canada’s production possibilities frontier. If Canada chooses to consume 10 million cars, how much wheat can it consume without trade? Label this point on the production possibilities frontier. c) Now suppose that the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car. If Canada continues to consume 10 million cars, how much wheat does this deal allow Canada to consume? Label this point on your diagram. Should Canada accept the deal?It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.
- The table below presents production schedule of apples and bananas in the country of mistania - assume that these are the only two goods that Mistania produces. Each row represents a specific set of apples and bananas that Mistania could produce. Suppose Mistania was currently at Senario C, producing 10 bananas and 80 apples. According to the data in this table, if Mistania wanted to produc 1 more banana, how many fewer apples will it need to produce? Scenario Bananas Apples A 0 100 B 5 90 C 10 80 D 15 70 E 20 60Suppose that Spain and Greece both produce wine and olive oil. The following table shows combinations of the goods that each country can produce in a week (in thousands of liters). Spain Greece Wine Olive Oil Wine Olive Oil 0 16 0 30 1 12 1 24 2 8 2 18 3 4 3 12 4 0 4 6 -- -- 5 0 a. Who has a comparative advantage in producing wine? Who has a comparative advantage in producing olive oil? Explain b. Suppose that Spain is currently producing 1000 liters of wine and 12000 liters of olive oil per week and Greece is currently producing 3000 liters of wine and 12000 liters of olive oil per week. Demonstrate that Spain and Greece can both be better off if they specialise in producing only one good and then engage in trade.A nation’s residents can allocate their scarce resources either to producing consumption goods or to producing human capital – that is providing themselves with training and education. The table below displays the production possibilities for this nation: Production Combination Units of Consumption Goods Units of Human Capital A 0 100 B 10 97 C 20 90 D 30 75 E 40 55 F 50 30 G 60 0 Suppose that the nation’s residents currently produce combination “A”. What is the opportunity cost of increasing production of consumption goods by 10 units? By 60 units? Does the law of increasing additional cost hold true for this nation? Why or why not?
- Assume China has 10,000 workers. Suppose that each Chinese worker produces either 30 pairs of boots or 10 software per month. Suppose that half of Chinese workers produce boots and half produce programs. What quantities of boots and software does China produce? Are these production combinations efficient? Select one: O a. China produces 50,000 pairs of boots and 150,000 software per month. These production combinations are efficient O b. China produces 150,000 pairs of boots and 50,000 software per month. These production combinations are efficient. O c. China produces 50,000 pairs of boots and 150,000 software per month. These production combinations are not efficient. O d. China produces 150,000 pairs of boots and 50,000 software per month. These production combinations are not efficient.Grapes 200 Grapes 200 California 50 France 25 Tomatoes Tomatoes 4 Refer to the figure shown, which represents the production possibilities frontiers for California and France. Considering the production possibilities frontiers of both countries, we can infer that California should specialize in producing ........ and be willing to ......... five tomatoes for each grape.Q3. Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. a. Draw Home's production possibility frontier. Label the curve PPF. (Clearly show the maximum amount of the two goods that can be produced on your graph) b. What is the opportunity cost of apples in terms of bananas? (Enter your response rounded to one decimal place.) c. In the absence of trade, what would the price of apples in terms of bananas be? There is now also another country, Foreign, with a labor force (L) of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. d. Derive the equation for Foreign's production possibility frontier. e. Graph Foreign’s production possibility frontier.
- Suppose that the nation of Costa Rica produces Coffee and Bananas. Below are the possible combinations of Coffee and Bananas that Costa Rica can produce. Combination Bananas metric tons (X axis) Coffee metric tons (Y axis) A 20,000 0 B 18,000 11,000 C 14,000 20,000 D 8,000 27,000 E 0 30,000 What is the opportunity cost (amount & item) of the first 8,000 tons of bananas produced? ______________ What is the opportunity cost (amount & item ) of increasing production from 8,000 tons of bananas to 14,000 tons of bananas ? _________________ What is the opportunity cost (amount & item) of increasing production from 14,000 tons of bananas to 18,000 tons of bananas ? _________________ What is the opportunity cost (amount & item) of increasing production from 18,000 tons of bananas to 20,000 tons of bananas ? _________________ What is happening to the opportunity cost as Costa Rica produces more bananas?…Q66 Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month. Which of the following statements is correct? a. Katie's opportunity cost of producing 1 jar of pickles is 0.5 pies. b. Katie's opportunity cost of producing 1 jar of pickles is 2 pies. c. Hugh's and Katie's opportunity costs of producing are the same. d. Hugh's opportunity cost of producing 1 pie is 0.25 jars of pickles. e. Hugh's opportunity cost of producing 1 jar of pickles is 4 pies. Clear my choice ◄ Midterm 2 Jump to...which one of the following is true about the production possibilities frontier (ppf) o a. the information is perfect o b. large number of buyers and sellers o c. free entry and exit o d. government interference in economic activities