Please explain correct and incorrect optionNote:- 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. Figure 3-81Chile's Production Possibilities Frontier2016141210↑sephans(in pounds)046 10 12 14 16 10 20 coffee(in pounds)20both goods and import neither good.neither good and import both goods.coffee and import soybeans.soybeans and import coffee.↑sepans18+16141210(in pounds)Colombia's Production Possibilities Frontier24 610 12 14 16 18 20(in pounds,Refer to Figure 3-8. Colombia should specialize in the production of

Opportunity cost is the cost of the next best thing that you didn’t choose. For example, if you…

Answered: Colombia should specialize in the…

Business

Economics

Colombia should specialize in the production of

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 6QR

See similar textbooks

Related questions

Q: Question 20 Revisit Later Q. "The National Statistical Office, which is under the Union Ministry of…

A: First of all, we have to discuss the term Gross Domestic Product (GDP). GDP or Gross Domestic…

Q: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…

A: Budget allocation refers to providing financial aid to the teams, so as to maximise the productivity…

Q: Refer to Figure 5-1. With reference to Graph A, at a price of $10, total revenue equals: Price $10--…

A: Total Revenue = P*Q ; P : Price , Q : Quantity Demanded

Q: 59 of 90 Which one (1) of the following is a "mortgagor" with respect to insurance? The named…

A: A mortgage is a legal agreement or a financial contract between a borrower (known as the mortgagor)…

Q: If the price level of what firms produce is rising across an economy, but the costs of production…

A: Profits refer to the financial gains earned by an individual, business, or organization when their…

Q: For a 9-year loan of $75,000 with an interest rate of 7.20% compounded monthly, What is your…

A: Monthly payment of loan refers to the amount of installment to be paid on the loan for each month.…

Q: The attached chart (Quits: Total Nonfarm) shows the quit rate (the number of who quit their job…

A: Quit rate refers to the rate at which people voluntarily leave their jobs within a specific time…

Q: A depositor decides to transfer $3,000 from a checking account to a savings account. Create a…

A: Macroeconomic monitoring will remain vital since it determines both the economy's final expansion…

Q: Suppose Dalia is a sports fan and buys only football tickets. Dalia deposits $2,000 into a savings…

A: Dalia is a sports fan and buys only football tickets. Dalia has $2000 which he deposits into a…

Q: A manufacturing plant has a potential production capacity of 1,000 units per month (capacity can be…

A: Total variable cost describes the cumulative expenses that vary with the level of production or…

Q: Luke borrows $200 000 from a bank to set up a medical practice. He agrees to pay a fixed interest…

A: Present value of annuity refers to the sum of the present values of each cash flow in the annuity…

Q: 50 of 90 A local builder offers to place with you insurance on every house he/she builds while it is…

A: RIBO means Registered Insurance Brokers of Ontario. RIBO is the self-regulatory body that governs…

Q: a Guildrerian traded buys a 150 flop barrel of florish pickles by exchanging 15 gulps and a florish…

A: Trade refers to the exchange of goods, services, or resources between individuals, businesses, or…

Q: Why the Chip Shortage Is So Hard to Overcome By Eun-Young Jeong in Seoul and Dan Strumpf in Hong…

A: Here are some of the reasons why it is so hard to overcome:The chip industry is capital-intensive…

Q: der the market for electric vehicles. The market price of each electric vehicle is $320,000, and…

A: Consumer surplus implies the benefit the consumer enjoys by buying a unit of good at a market price,…

Q: How much must be set aside now to cover payments of $300,000 three years from now and $500,000 five…

A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…

Q: The economy is in with unemployment and To return the economy to the natural rate of output, the Fed…

A: The economy is in ____ with ____ unemployment and ____ output.To return the economy to the natural…

Q: In Millions of Dollars Net Income Owed to Foreigners 5,590 Depreciation 8,700 In addition to…

A: GDP is the entire value of goods and services produced inside a country's borders during a specific…

Q: The Coase Theorem states that: O As long as property rights are well defined and no transaction…

A: The Coase Theorem is a theorem in economics that expresses that, within the sight of externalities,…

Q: Pls help ASAP

A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…

Q: Required: Estimate your exposure (b) to the exchange risk. Note: Negative amount should be…

A: The meausre that depicts the rate or price of one currency being measured in rate of other currency…

Q: f the GDP deflator in 2009 equals 1.25 and nominal GDP in 2009 equals $18.75 trillion, then the…

A: The GDP deflator is an index used to measure the general price level in an economy, and it's used to…

Q: Suppose that the British economy produces two goods: laptops and books. The quantity produced and…

A: Gross domestic product measures the market value of final goods and services produced by a nation…

Q: Exercise 3.1 List all the reduced pure strategies, then reduce the tree to strategic form. START I b…

A: The following game tree is given:

Q: How does the Specific-Factors model discussed in this chapter differ from the Ricardian model we…

A: Specific-Factor Model: The specific-factors model is an economic model used in international trade…

Q: Economics of Education Problem Set 1 1. When economists discuss education markets, what do they…

A: Economics is a social science that studies how individuals, businesses, governments, and societies…

Q: explain urban poverty. Graphic representation such as curve/graph would be useful to hel

A: It can be defined as a complex socio-economic condition that arises due to the lack of sufficient…

Q: 1. In the context of game theory, explain the concept of the Prisoner's Dilemma and its implications…

A: The Prisoner's Dilemma is a key idea in game theory, a branch of economics that investigates how…

Q: Pokhara, a monopolist in the market for winterised jackets, faces a unit mass of consumers with unit…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: A: 1997 02-2008 04 Inflation Measure WPI Headline WPI Food WPI Core CPI Headline CPI Food CPI Core…

A: Correlation is a statistical measure that quantifies the degree to which two or more variables are…

Q: You are working to model your production function and you are interested in the equation of the line…

A: f(x) = -1,000+26-0.2x^2f'(x) is the first derivative:f'(X) = d/dx(-1,000)+d/dx(26x)-d/dx(0.2x^2)So…

Q: Your business produces two products: graphics and writing assessments. However, time is finite and…

A: Opportunity cost is the value of the best alternative forgone. It is the cost of making a choice, in…

Q: The figure to the left shows the isoprofit curves and demand curve for Cheerios breakfast cereal.…

A: a) A rival company producing a similar brand slashes its prices.b) The cost of producing Apple…

Q: Respond to the following: In today's economy, there are powerful companies that seem to control…

A: The AG argues that these practices have stifled competition in the credit card processing market,…

Q: Hyundai Corporation is planning to host a K-Pop concert around the Christmas season. The expected…

A: Supply refers to the quantity of a good or services that a seller is willing and able to sell at a…

Q: Consider data on births to women in the United States. Two variables of interest are the dependent…

A: Here we provided an estimated regression model where the dependent variable is the weight of an…

Q: 2/9 3/9 "Suppose that a company with a production function f(x₁, x2) = 9x1 ₂ wants to produce 'y'…

A: Find the optimal values of x and y that minimize the cost function.The cost function is given…

Q: At a price of $35 per bookshelf, producers will provide 140 shelves to the market. At a price of $80…

A: Demand curve is the downward sloping curve.Supply curve is the upward sloping curve.Equilibrium is…

Q: Given the following summary statistics, determine the regression equation used to predict y from r.

A: The regression equation is:where:m is the slopeb is the y-intercept

Q: A family that won a $100,000 prize on America's Funniest Home Videos decided to put one-half of the…

A: A family that won a $100,000 prize on America's Funniest Home Videos decided to put one-half of the…

Q: The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at…

A: Production possibility frontier shows different combination of two good or services that can be…

Q: Figure 5-2 illustrates the revenue and cost conditions of ABC Inc., which sells calculators in…

A: International dumping, also known as "dumping" in international trade, refers to the practice of a…

Q: One fitness club charges a $10 promo sign-up fee and $15 per month. Another club charges a $25 promo…

A: There are two fitness clubs. The first fitness charges a $10 promo sign-up fee and $15 per month.…

Q: Comparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18-acre plot of…

A: A Production Possibility Frontier (PPF), also known as a Production Possibility Curve (PPC), is a…

Q: Refer to Table 3.1 above. Country A has an absolute advantage in the production of and Country B has…

A: Given,Labor Hours per OutputCountry ACountry BGood X3020Good Y1.61.2

Q: There are two countries Home and Foreign. Home has 1,200 units of labor available. It can produce…

A: Relative demand and supply:Relative demand and supply are two very important concepts for…

Q: Topic 1.2- (continued)- Answer the question then show what happens as a result of each scenario 10.…

A: Production Possibilities Curve (PPC) is a graphical representation in economics that illustrates the…

Q: Price 8 7 6 5 4 3 I I 10 11 12 13 MC ATC AVC Quantity

A: The market price is $4, which is below the firm's average variable cost at all levels of output.…

Q: What does the following graph represent? T. Talent

A: The marginal cost is the change in the total cost when one additional unit of good is produced.…

Q: An economy's production possibilities frontier is fixed in the long run. True False

A: A Production Possibilities Frontier (PPF), also known as a Production Possibility Curve (PPC), is a…

Question

100%

Please explain correct and incorrect option

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.

Figure 3-81
Chile's Production Possibilities Frontier
20
16
14
12
10
↑sephans
(in pounds)
0
4
6 10 12 14 16 10 20 coffee
(in pounds)
20
both goods and import neither good.
neither good and import both goods.
coffee and import soybeans.
soybeans and import coffee.
↑sepans
18+
16
14
12
10
(in pounds)
Colombia's Production Possibilities Frontier
24 610 12 14 16 18 20
(in pounds,
Refer to Figure 3-8. Colombia should specialize in the production of

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce the concept of opportunity cost and comparative advantage.

VIEW

Step 2: Determine what Colombia should specialize in the production of.

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
What is comparative advantage?
A semiconductor is a key component in your laptop, cell phone, and iPod. The table providesinformation about the market for semiconductors in the United States. Producers ofsemiconductors can get $18 a unit on the world market.a. With no international trade, what would be the price of a semiconductor and how manysemiconductors a year would be bought and sold in the United States?b. Does the United States have a comparative advantage in producing semiconductors?c. Draw a graph (graph is for your own reference, not required to be attached in the answersheet) to illustrate the U.S. supply and demand market for semiconductors. What is the pricewith free international trade? What is the quantity of semiconductors produced in U.S. andtotal quantity bought by U.S. people and the quantity exported from other countries?d. Due to loss of competitiveness brought on by appreciation of the exchange rate and the highproduction costs, U.S. government reduce the export (or limit the supply of…