Ej Country B grows both roses and apples. The following graphs shows the productionpossibilities frontier for country B.Use the given information to answer questions 23 - 25.Roses1009075500JQuestion 23Question 2440 50MQuestion 25PPFNIs the opportunity cost increasing, decreasing, or constant?[Select]60 70 ApplesWhat is the opportunity cost if the country goes from L to N?[Select]What is the gain if the country goes from M to J? [Select]

Production Possibility Frontier Possibility of manufacture The Production Possibility Curve is…

Country B grows both roses and apples. The following graphs shows the production possibilities frontier for country B. Use the given information to answer questions 23 - 25. Roses 100 90 75 50 0 Question 23 Question 24 40 50 M Question 25 PPF N 60 70 Is the opportunity cost increasing, decreasing, or constant? [Select] Apples What is the opportunity cost if the country goes from L to N? [Select] What is the gain if the country goes from M to J? [Select]

Country B grows both roses and apples. The following graphs shows the production possibilities frontier for country B. Use the given information to answer questions 23 - 25. Roses 100 90 75 50 0 Question 23 Question 24 40 50 M Question 25 PPF N 60 70 Is the opportunity cost increasing, decreasing, or constant? [Select] Apples What is the opportunity cost if the country goes from L to N? [Select] What is the gain if the country goes from M to J? [Select]

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter7: Economic Growth: Theory And Policy

Section: Chapter Questions

Problem 4TY

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Review the numbers for Canada and Venezuelafrom Table 33.12 which describes how many barrelsof oil and tons of lumber the workers can produce. Usethese numbers to answer the rest of this question.a. Draw a production possibilities frontier for eachcountry. Assume there are 100 workers in eachcountry. Canadians and Venezuelans desire bothoil and lumber. Canadians want at least 2,000tons of lumber. Mark a point on their productionpossibilities where they can get at least 3,000tons.b. Assume that the Canadians specializecompletely because they figured out they havea comparative advantage in lumber. They arewilling to give up 1,000 tons of lumber. Howmuch oil should they ask for in return for thislumber to be as well off as they were with notrade? How much should they ask for if theywant to gain from trading with Venezuela? Note:We can think of this “ask” as the relative price ortrade price of lumber.c. Is the Canadian “ask” you identified in (b) alsobeneficial for Venezuelans? Use the…
Suppose the hypothetical economy produces only car and oil using its available resources and existing technology. CombinationsUnitsProduction alternatives ABCDE OilKgs8006004002000 CarNumber0500100015002000 Using the above information, Draw the production possibility frontier/ curve of a nation.If the economy is initially operating at point C, then calculate the opportunity cost producing one more unit of car. What changes are required for the economy to shift PPF either outward or inward?
Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. What is the maximum quantity of guns that can be produced? What is the maximum quantity of butter than can be produced? Draw the nation's production possibility curve. (Photo's are note accepted) What is the opportunity cost of guns in this nation? Explain why the nation can't produce both 3 guns and 4 butters. Explain why the nation shouldn't produce both 1 gun and 2 butters.
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The quantities shown are taken from a production possibilities frontier for an economy with diminishing returns. The blank in the table could be which value? Bags Courses 40 300 60 ? 80 100
Assume a country produces haircuts and shirts with inputs of labour. The country has 100 hours of labour available. A haircut requires 30 minutes of labour, while a shirt requires 2 hours of labour. Solvve sub-parts as well. a. Construct country’s production- possibility frontier. b. Suppose there is an increase in the labour hours from 1,000 to 1,500 labour hours. Indicate on the PPF how it will impact the production, if at all and brief explain why?
Combination Cinnamon metric tons (X axis) Nutmeg metric tons (Y axis) A 7,000 0 B 6,000 7,000 C 4,500 11,000 D 2,500 14,000 E 0 16,000 What is the opportunity cost (amount & item) of the first 7,000 tons of nutmeg produced? ______________________ What is the opportunity cost (amount & item) of increasing production from 7,000 tons of nutmeg to 11,000 tons of nutmeg ? ________________ What is the opportunity cost (amount & item )of increasing production from 11,000 tons of nutmeg to 14,000 tons of nutmeg ? _____________ What is the opportunity cost (amount & item) of increasing production from 14,000 tons of nutmeg to 16,000 tons of nutmeg ? ________________ What is happening to the opportunity cost as Copperton produces more nutmeg? ____________________________________
scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
Why is a production possibility curve concave explain?
You just got a job in Washington, D.C. You move into an apartment with some acquaintances. All your roommates, however, are slackers and do not clean up afterthemselves.You,ontheotherhand,cancleanfaster than each of them. You determine that you are 70% faster at dishes and 10% faster with vacuuming. All of these tasks have to be done daily. Which jobs should you assign to your roommates to get the most free time overall? Assume you have the same number of hours to devote to cleaning. Now, since you are faster, you seem to get done quicker than your roommate. What sorts of problems may this create? Can you imagine a traderelated analogy to this problem?
Corn (lb) Scarves(#)U.S. 20 10Mexico 25 5 What is the opportunity cost of one scarf in Mexico? a. 3 lbs of corn b. 1/3 lb of corn c. 2 lbs of corn d. 5 lbs of corn PreviousNext
The opportunity cost of moving from point H to point G in the above picture is (specify amount and good, ie: 5009 guns)