New Zealand's Production Possiblitles Table (Millions of Bushels) Production Alternatives Product B C Apples 20 40 60 Plums 15 10 Spain's Production Possibilities Table (Millions of Bushels) Production Alternatives Product R T Apples 20 40 60 Plums 60 40 20 20-16 © 2021 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Chapter 20 International Trade What is each country's cost ratio of producing plums and apples? b. a. Which nation should specialize in which product? Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. (Plot these lines on your graph.) d. Suppose the optimum product mixes before specialization and trade were C.

New Zealand's Production Possiblitles Table (Millions of Bushels) Production Alternatives Product B C Apples 20 40 60 Plums 15 10 Spain's Production Possibilities Table (Millions of Bushels) Production Alternatives Product R T Apples 20 40 60 Plums 60 40 20 20-16 © 2021 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Chapter 20 International Trade What is each country's cost ratio of producing plums and apples? b. a. Which nation should specialize in which product? Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. (Plot these lines on your graph.) d. Suppose the optimum product mixes before specialization and trade were C.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Title Suppose that Lynn enjoys coconut oil in her coffee. She has very particular preferences, and she mus Description Suppose that Lynn enjoys coconut oil in her coffee. She has very particular preferences, and she must have exactly two spoonfuls of coconut oil for each cup of coffee. Let C be the number of cups of coffee, and O be the number of spoonfuls of coconut oil. Also, let PC be the price of a cup of coffee. Suppose Lynn has $12 to spend on coffee and coconut oil. Also, the price of coconut oil is $.50 per spoonful.a) Graph Lynnâs Price Consumption Curve for prices, PC = $1, PC = $2, and PC = $3. Please put the number of cups of coffee on the horizontal axis, and the number of spoonfuls of coconut oil on the vertical axis. Be sure to label your graph carefully and accurately.b) Graph Lynnâs demand curve for coffee. You may assume that both coconut oil and coffee are continuous variables so she can consume any amount of coffee and coconut oil that she could afford.…
11.Explain how (if at all) each of the following events affects the location of a country’s production possibilities curve: LO5 a.The quality of education increases. b.The number of unemployed workers increases. c.A new technique improves the efficiency of extracting copper from ore. d.A devastating earthquake destroys numerous production facilities.
Suppose the price of a sweater is $15. Julia’s benefit from purchasing each additional sweater isgiven in the table below. Julia gets the most benefitfrom the first sweater and less benefit from eachadditional sweater. If Julia is behaving rationally,how many sweaters will she purchase? [LO 1.2]Marginal benefit ($)1st sweater 502nd sweater 353rd sweater 304th sweater 235th sweater 126th sweater 8
Suppose that three volunteers are preparingcookies and cupcakes for a bake sale. Diana canmake 27 cookies or 18 cupcakes per hour; Andycan make 25 cookies or 17 cupcakes; and Sam canmake 10 cookies or 12 cupcakes. [ LO 2.2]a. Who has the absolute advantage at makingcookies?b. At making cupcakes?
What is the direction of slope indicated by thefollowing examples? [LO A.3]a. As the price of rice increases, consumerswant less of it.b. As the temperature increases, the amount ofpeople who use the town pool also increases.c. As farmers use more fertilizer, their output oftomatoes increases.
Think about how and why goods and resourcesare scarce. Goods and resources can be scarcefor reasons that are inherent to their nature at alltimes, temporary or seasonal, or that are artificially created. Separate the goods listed below into two groups; indicate which (if any) are artificiallyscarce (AS), and which (if any) are inherentlyscarce (IS). [LO 1.1]a. air of any qualityb. landc. patented goodsd. original Picasso paintings
It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.
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Your friend Sam has been asked to prepare appetizers for the university reception. She has anunlimited amount of ingredients and 6 hours inwhich to prepare them. Sam can make 300 minisandwiches or 150 servings of melon slices toppedwith smoked salmon and a dab of sauce per hour.[LO 2.1]a. What is Sam’s opportunity cost of makingone mini-sandwich?b. What is Sam’s opportunity cost of baking onemelon appetizer?c. Suppose the reception has been postponed,and Sam has an extra 4 hours to prepare.What is the opportunity cost of making onemini-sandwich now?d. Suppose the reception has been postponed,and Sam has an extra 4 hours to prepare.What is the opportunity cost of making onemelon appetizer now?e. Suppose Sam’s friend Chris helpsby preparing the melon slices, increasingSam’s productivity to 300 mini-sandwichesor 300 melon appetizers per hour. What isthe opportunity cost of making one minisandwich now?f. Suppose Sam’s friend Chris helps by preparing the melon slices, increasing…
4. a. Suppose that you are on a deserted island and can produce either 32 tons of coconuts OR 16 tons of pineapples. Draw the PPF representing this situation. Assume that coconuts are on the x-axis. Also assume that the PPF is linear. Clearly label your graph. b. For each of the following combinations say whether they are attainable (feasible) or unattainable (infeasible), based on the above information. If they are feasible, say whether they are efficient or inefficient. Also, label the three points on the graph above. (i) 8 tons of coconuts and 12 tons of pineapples: (ii) 16 tons of coconuts and 3 tons of pineapples:
3. Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup, no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats, 9 for the second he eats, 8 for the third he eats, and so on (that is, declining by 1 util per additional doughnut). In addition, suppose that coffee costs $1 per cup, doughnuts cost $1 each, and Omar has a budget that he can spend only on doughnuts, coffee, or both. How big would that budget have to be before he would spend a dollar buying a first cup of coffee? *use tables and/or graphs if possible, please original work