Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain.

Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter11: The Case For Free Markets: The Price System

Section: Chapter Questions

Problem 3DQ

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Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. (d) Assume the two islands experience constant opportunity costs in the production of the two products. Draw a correctly labeled graph illustrating Zeetopia’s and Freshland’s production possibilities, showing coconuts on the horizontal axis and mangoes on the vertical axis. Plot the numerical values from the table above on your graph. (e) On your graph in part (d), show a combination of coconuts and mangoes, labeled as point X that is unattainable for Freshland but feasible and inefficient for Zeetopia.
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. Coconuts (in tons) Mangoes (in tons) Zeetopia 50 60 Freshland 50 30 (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain. (c) Assume Zeetopia and Freshland decide to specialize according to their comparative advantages and 1 ton of coconuts is exchanged for 1 ton of mangoes. Are specialization and trade under these terms beneficial to both Zeetopia and Freshland? Explain. (d) Assume the two islands experience constant…
Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Zeetopia and Freshland are two small tropical islands that use the same amounts of resources to produce mangoes and coconuts as shown in the table below. Coconuts (in tons) Mangoes (in tons) Zeetopia 50 60 Freshland 50 30 (a) Which island has an absolute advantage in producing coconuts? Explain. (b) Which island has a comparative advantage in producing coconuts? Explain. (c) Assume Zeetopia and Freshland decide to specialize according to their comparative advantages and 1 ton of coconuts is exchanged for 1 ton of mangoes. Are specialization and trade under these terms beneficial to both Zeetopia and Freshland? Explain. (d) Assume the two islands experience constant…
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. On the same graph, draw two PPFs: one for Kansas and one for California. Assume Kansas can grow 10 units of oranges or 80 units of wheat. California can grow 100 units of oranges or 100 units of wheat. For both states, points in between these limits are possible. Show how the total production of wheat and oranges could be greater with specialization than with self-sufficiency. Assume that the states trade 40 units of wheat for 20 oranges. Demonstrate the gains from trade with points on your graph. 1. Explain the opportunity cost of producing 1 unit of oranges and 1 unit of wheat. 2. Draw your own graph on a piece of paper (don't download a graph from the internet or use technology to generate a graph). 3. Clearly label all axes and lines. Include all relevant information.
The table below lists the maximum feasible quantities of digital apps and tablet devices that can be produced in 1 hour using all resources—land, labor, capital, and entrepreneurial talent that is available in the Southland and East Coast. In the Southland, residents can use all their resources to produce either 90 digital apps or 225 tablet devices per hour. In East Coast, residents can use all their resources to produce either 100 digital apps or 50 tablet devices per hour. Assuming constant opportunity costs of producing digital apps and tablet devices in both countries answer the following questions. Product Southland East Coast Digital apps 90 100 Tablet devices 225 50 What is the opportunity cost of producing tablet devices in Southland? What is the opportunity cost of producing digital apps in Southland? What is the opportunity cost of producing tablet devices in East Coast? What is the opportunity cost of producing digital apps in East…
Alice and Bob each produce haircuts and landscaping services. Alice can provide 4 haircuts in one hour. Bob can provide 2 haircuts in one hour. It takes Alice 2 hours to landscape an acre of property. It takes Bob 1 hour to landscape an acre of property. Assume Alice and Bob both work a standard 8 hour day. If Alice and Bob were to combine forces and open their business "Heads and Hedges" together, how should Alice and Bob allocate their time to maximize the gains from trade with one another? (check all that apply) Alice should only spend her time cutting hair. Bob should only spend his time cutting hair. Bob should only spend his time landscaping. Alice should only spend her time landscaping.
The two products, X and Y, and the two nations, A and B. The following equations provide the production possibility frontier and utility function for each country: A. Does nation A’s economy exhibit constant opportunity cost in production? How about nation B? Support your answer using numeric/quantitative example. B. What is the optimal level of production and consumption in autarky for nation A and nation B which maximizes its community utility? Show full solution for both nations
Which statement is true? Group of answer choices If one party is more productive in producing both products, it has a comparative advantage in producing both goods None of the listed statements are true A party can have a comparative disadvantage in producing both goods A party has the comparative advantage in producing a good if it has the absolute advantage in producing the other good If parties specialise and trade, it is only the less productive party that can experience any gains from trade
What does a Production Possibility Frontier for Product X versus Y represent? A) The total combined production of Product X + Product Y for a given set of factors of production B) The trade-off in the level of total production at various output mixes for Product X and Product Y C) The most efficient product production mix for a given set of factors of production D) All of the above
Indicate if the following statements is true or false: human beings like other species can do both cooperation and competition to obtain resources, to survive, to reproduce, etc True False..
If Yucatan produces 200 pounds of food per month, it must produce 5050 gallons of sunscreen to achieve production efficiency. Part 3 The opportunity cost of 1 pound of food is enter your response here gallons of sunscreen. The opportunity cost of 1 gallon of sunscreen is enter your response here pounds of food.
Instructions: Once you’ve read Chapter 1: Limits, Alternatives, and Choices and Chapter 1 Appendix: Graphs and Their Meaning then read the scenario and find the solutions to the problems. Scenario: Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, and he is willing to trade 3 fish for every 1 coconut. Problems: On a single figure, draw budget lines for trading with Friday and for trading with Kwame. (Put coconuts on the vertical axis.) Note: The budget line from trading with Friday (or Kwame) features a set of attainable combinations of coconuts and fish. What is the slope of the budget line from trading with Friday? What is the slope of the budget line from trading with Kwame?