Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest. Rye (Bushels per acre)Corn (Bushels per acre) Gilberto408Juanita287 On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF. (a. Gilberto, b. Juanita) has an absolute advantage in the production of rye, and (a. Juanita, b. Gilberto) has an absolute advantage in the production of corn. Gilberto's opportunity cost of producing 1 bushel of corn is _____ bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn is _____ bushels of rye. Because Gilberto has a (a. higher, b. lower) opportunity cost of producing corn than Juanita, (a. Gilberto, b. Juanita) has a comparative advantage in the production of corn, and (a. Juanita, b. Gilberto) has a comparative advantage in the production of rye. Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer canproduce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye corn or to produce rye on some of the land andcorn on the rest.GilbertoJuanitaCORN (Bushels)120108On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Juanita's PPF.9684726048362412 +Rye(Bushels per acre)400 +028Corn(Bushels per acre)60 120 18087240 300360RYE (Bushels)420 480 540 600Gilberto's PPFJuanita's PPF has an absolute advantage in the production of rye, andGilberto's opportunity cost of producing 1 bushel of corn isbushels of rye. Because Gilberto has aadvantage in the production of corn, andIshas an absolute advantage in the production of corn.bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn▾ opportunity cost of producing corn than Juanita,has a comparativehas a comparative advantage in the production of rye.

The country produces that good in which it has a ‘comparative advantage’ in producing that good. The…

Answered: Gilberto and Juanita are farmers. Each…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 12RQ: What is the difference between microeconomics and macroeconomics?

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Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye or corn or to produce rye on some of the land and corn on the rest.

	Rye (Bushels per acre)	Corn (Bushels per acre)

Gilberto	40	8
Juanita	28	7

On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Juanita's PPF.

(a. Gilberto, b. Juanita) has an absolute advantage in the production of rye, and (a. Juanita, b. Gilberto) has an absolute advantage in the production of corn.

Gilberto's opportunity cost of producing 1 bushel of corn is _____ bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn is _____ bushels of rye. Because Gilberto has a (a. higher, b. lower) opportunity cost of producing corn than Juanita, (a. Gilberto, b. Juanita) has a comparative advantage in the production of corn, and (a. Juanita, b. Gilberto) has a comparative advantage in the production of rye.

Gilberto and Juanita are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of rye and corn each farmer can
produce per year on a given acre. Each farmer chooses whether to devote all acres to producing rye corn or to produce rye on some of the land and
corn on the rest.
Gilberto
Juanita
CORN (Bushels)
120
108
On the following graph, use the blue line (circle symbol) to plot Gilberto's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Juanita's PPF.
96
84
72
60
48
36
24
12 +
Rye
(Bushels per acre)
40
0 +
0
28
Corn
(Bushels per acre)
60 120 180
8
7
240 300
360
RYE (Bushels)
420 480 540 600
Gilberto's PPF
Juanita's PPF

has an absolute advantage in the production of rye, and
Gilberto's opportunity cost of producing 1 bushel of corn is
bushels of rye. Because Gilberto has a
advantage in the production of corn, and
Is
has an absolute advantage in the production of corn.
bushels of rye, whereas Juanita's opportunity cost of producing 1 bushel of corn
▾ opportunity cost of producing corn than Juanita,
has a comparative
has a comparative advantage in the production of rye.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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