If John can produce a good in less time than Fred then he has an absolute advantage in producing that good. Group of answer choices True False
Q: Nation alpha can produce either 3 units of good X or 1 unit of good Y with 1 hour of labour whereas…
A: In one hour of labor:Nation alpha can produce= 3 units of good X or 1 unit of good YNation beta can…
Q: Person 1 can allocate her 8-hour a day between the production of two goods. A and B. Each hour…
A: As per given details:- Production level(each hour) Goods A Goods B Person 1 4 2 Person 2…
Q: Using the Heckscher-Ohlin model, if a nation can shift its factors of production from the production…
A: The Hecksher Ohlin theorem states that a country exports a labor/capital intensive good if it is…
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Q: Andreas can knit 1 scarves per hour and 4 hats per hour. Katya can knit 9 scarves per hour and 2…
A: Absolute cost advantage: - it is a principle of international trade given by Adam Smith which shows…
Q: true or false Economic models must mirror reality or they are of no value.
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Economics is the study of the allocation of the abundant resources in a country. True False
A: Economics is the study of the allocation of scarce resources in the economy. Households have…
Q: Collective goods are public goods that are available to all regardless of individual contribution…
A: Answer: A collective good (or public good) is both non-excludable and non-rivalrous. It means no one…
Q: Assume that it takes 2 hours of labor to produce a unit of good X and 6 hours of labor to produce a…
A: The next best alternative is commonly referred to as opportunity cost. It's also known as the…
Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Which of the following is a normative statement * If a sin tax is imposed on cigarettes and…
A: Normative economics deals with subjective judgements . It tells you how the situation "should be "…
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A: Given capital and land are immobile and can only produce shoes and beans respectively, labor would…
Q: Voluntary contributions toward a public good Larry and Raphael are considering contributing toward…
A: Given that: For every $1 contribution, Larry receives a benefit of $0.80 and Raphael receives a…
Q: absolute advantage in the production of all goods. is True or False
A: A country have an absolute advantage (AA) in the production (manufacture) of a good if it can…
Q: true or false free market economies are generally considered to be efficient and fair
A: # Free market economies are totally driven by the market forces of demand and supply.
Q: In market economies, most decisions are made by ___, while in command economies, most economic…
A: In a market economy, there is no government intervention, the market forces determined the…
Q: Why is a production possibility curve concave explain?
A: According to the given question A production possibility curve indicates a downward sloping curve…
Q: Consider a company that produces Good A and Good B. The equation of the PPF is 14.x² + 7y² = 11,900,…
A: The production possibility frontier (PPF) curve shows the different combination of inputs which…
Q: Consider a production possibility frontier with jeans on the vertical axis and shoes on the…
A: Answer: If the jeans are shown on the vertical axis and the economy moves towards to frontier closer…
Q: If there are two provinces (A and B) that can produce two goods (X and Y), such that province A can…
A: Province A produces 2 goods X and Y such that : It can produce 90X or 10Y Province B produces 2…
Q: Even if preferences and technology are well behaved Walras' law might NOT hold in an economy with…
A: In an economy, there are different laws used to make an analysis of different economic variables and…
Q: No one will be worse off when the economy moves to a Pareto Superior allocation to the current one.…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: If an economy has the absolute advantage in the production of all goods over another economy, then…
A: Absolute advantage refers to the fact when one nation can produce more of a particular good as…
Q: The country A has an endowment (total supply) of 160 units of labor and 14 units of land, whereas…
A: Land/labor intensive good is the good which needs large amount of land/labor than any other factor…
Q: Explain your answer in up to 200 words and using a diagram: In the Pure Specific Factors model with…
A: Given that it is a two-factor model, and a tax is applied on W imports, W will become more…
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A: The countries in the world have developed their economies by interacting with the other countries…
Q: According to Smith, when private individuals are left free to seek their own interests in free…
A: Adam Smith was said to be the Father of economics.
Q: Hi there. can you please assist on the following question below Multiple-choice questions: Select…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The Ricardian model predicts that the market prices for goods with trade cannot be outside the range…
A: A pleasing product purchased by a consumer is an example of a good that satisfies human desires and…
Q: Meagan, a contractor, is hired to install cabinets in a new home and has to decide whether to build…
A: Comparative advantage is the ability of a producer to produce the product with least opportunity…
Q: Egypt has a system where each poor person receives a fixed amount of bread – 5 pita loaves of bread…
A: MRS refers to marginal rate of substitution. It refers to the rate at which consumer is willing to…
Q: The basic economic argument is that humans face the big problem of __________. That big problem…
A: Scarcity refers to the problem of limited resources available to the economy to produce goods and…
Q: Refer to Table 1. Who should produce berries? [ Select ] Who should produce fish? [ Select ] Since (…
A:
Q: Person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted…
A: Opportunity cost Opportunity cost is the cost of next best alternative foregone. In other words it…
Q: Consider the Hecksher-Ohlin model. Let the total endowment of capital in Home and Foreign be 30 and…
A: Here, according to the given information, it can be said that Home has higher capital and labor than…
Q: Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly…
A: The advantage in an absolute sense comes in: while comparing that if a similar quantity of resources…
Q: Consider a company that produces Good A and Good B. The equation of the PPF is 14x² + 7y² = 11,900,…
A: The production possibility frontier (PPF) curve shows the different combination of inputs which…
Q: 1. Pareto Optimality: B A X, M Private Goods and Services per Year 1.1 From the Production…
A: Answer 1.1 Pareto efficiency, also known as Pareto optimality, is an economic state in which…
Q: Assume two countries that produce and consume food and clothing. Country A uses: • 2 hours of labor…
A: Answer to the first part of the question: As per the given information in the question, opportunity…
Q: Suppose the firms needs to produce 18 loaves of bread, and can only choose sites 1 and 2 because…
A: Since there are multiple questions posted, we will answer only the first one.
Q: In market economies, most decisions are made by ___, while in command economies, most economic…
A: Command economy: - a command economy is a controlled economy where all economic decisions are taken…
Q: In a free market equilibrium, the gains from trade are always greater for consumers than for…
A: The gain from trade under perfect competition depends on the elasticities of demand and supply and…
Q: Good X True or false: The production possibilities frontiers above could represent a scenario where…
A: A production possibility frontier depicts all of the possible combination of two goods which could…
Q: Which trade advantage is used more commonly among economists? absolute advantage comparative…
A: Trade advantages are key to get involved in the international trade. The trade advantages are…
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- Person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good b yields 2 units whereas each hour devoted to good A produces 4 units. (a) State whether 9 units of good B and 12 units of good A are attainable, unattainable, efficient or inefficient (b) Person 2 can produce 3 units of good B and 4 units of good A per hour. (I) who has absolute advantage oil production of good B?(ii) who has absolute advantage in the production of good A?(iii)calculate the opportunity cost for good B for person 2 (iv) calculate the opportunity cost for good A for person 1 (v) who has the comparative advantage in the production of good B?(vi) who has the comparative advantage in the production of good A ?Person 1 can allocate her 8-hour a day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units (B) Person 2 can produce 3 units of Good B or 4 units of good A per hour i) who has the absolute advantage in the production of of Good B ? ii) Who has the absolute advantage in the production of Good A ? iii) Calculate the opportunity cost for Good B for 2 persons iv) Calculate the opportunity cost for Good A for 1 personAn economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit of labour can produce either 1unit of X or 4units of Y (or linear combination of the two).A unit of capital can produce either 4units of X or 1unit of Y (or linear combination of the two)there are 100units of each means of production. (i) Draw the production possibility frontier of the economy when the two goods can only be produced by a mixture of both factors. (ii)What will be the opportunity cost of X if the economy produces 50units of X ? (iii) Given that the production technology is linear ,will the opportunity cost of X remain unchanged when we produce 90units of X ? (iv)Briefly explain the difference between the PPC with a constant opportunity cost and the PPC with an increasing opportunity cost as more output of one good is produced. Use a well labeled diagram to explain your answer?
- Andreas can knit 1 scarves per hour and 4 hats per hour. Katya can knit 9 scarves per hour and 2 hats per hour. What is the opportunity cost of one scarf (in terms of number of hats) for the person with the absolute advantage in scarf production?Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in the table below. Martha Dave Time to make a taco 10 minutes 15 minutes Time to make a cake 20 minutes 30 minutes Which person has an absolute advantage in the production of tacos, and which person has an absolute advantage in the production of cakes? Group of answer choices Martha has an absolute advantage in producing both goods. Dave has an absolute advantage in producing both goods. Neither Dave nor Martha has an absolute advantage at producing either good. Both Martha and Dave have an absolute advantage in producing both goods. Martha has an absolute advantage in tacos; Dave has an absolute advantage in cakes.Why is a production possibility curve concave explain?
- Egypt has a system where each poor person receives a fixed amount of bread – 5 pita loaves of bread / week. After Fred and Farouq each receive their free government bread, Fred sells Farouq 1 loaf of bread in return for $0.50, which increases Fred’s consumption of the composite good by $0.50 and decreases Farouq’s consumption of the composite good by $0.50. What must be Fred and Farouq’s MRSs (bread relative to composite good) after they trade?Person 1 can allocate her 8-hour day between the production of two goods.A and B .Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units Person 2can produce 3 units of Goods B or 4 units of Good A per hour Who have the absolute advantage in the production of Good B Who have the absolute advantage in the production of Goods AX Y Producer A 20 20 Producer B 15 15 the table above shows the maximum number of goods X and Y producers A and B can produce in a day. Which of the following statements is TRUE? 1. Producer A has a comparative advantage in producing X 2. Producer A has a cmparative advantage in producing Y. 3. Producer B has the absolute advantage in producing X and Y 4. No producer has comparative advantage in either X and Y> A. 1 and 2 Only B. 3 and 4 only C. Only 4 D. 1, 2, and 3 only
- Can more than one producer have an absolute advantage at producing the samegood? Why or why not?Hi there. can you please assist on the following question below Multiple-choice questions: Select one correct answer for each of the following. Q.1.1 Consider the information contained in the table below. The table shows output rates in France and Holland for two goods (cheese and wine), when resources are fully and efficiently utilised. Country Cheese Wine Holland 450 150 France 400 100 Based on this information:(1) Holland should specialise in wine production and should export wine toFrance;(2) Holland has the absolute advantage in both cheese and wine production and consequently will not benefit by trading with France;(3) France should specialise in wine production and should export wine toHolland;(4) Holland should specialise in both cheese and wine production and should export both goods to France.Q.1.2 News about high levels of criminal activity in South Africa discourages American tourists from visiting South Africa. This decline in the number of tourists from the USA…Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. Assume, initially, that there is no possibility of trade between Elliot and Jordy. If Elliot wishes to consume 4 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 4 fish? Briefly explain your reasoning. If Jordy wishes to consume 2 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 2 fish? Briefly explain your reasoning. Now assume that trade is possible between Elliot and Jordy. If they want to continue to consume the same number of fish indicated in part (1), how many additional pineapples would they be able to collectively consume each day relative to…
