1. Suppose that in the UK 15 million cars could be produced with the sameresources as 13 million airplanes. Suppose that in Poland 15 million cars couldbe produced with the same resources as 14 million airplanes. Which countryhas a lower opportunity cost in producing cars and why?2. In a one-factor economy, you have the following information: Home has 1,200units of labor available. It can produce two goods, apples and bananas. Theunit labor requirement in apple production is 3, while in banana production it is2. Foreign, has a labor force of 800. Foreign's unit labor requirement in appleproduction is 5, while in banana production it is 1.a. Graph Home's & Foreign production possibility frontier. Specify the maximumquantity that can be produced from both goods. Find the absolute value of theslope.b. Compare the opportunity cost of apples in Home and in Foreign.c. If apples are sold at $9/unit and bananas are sold at $5/unit. Find the wages paidin Home to produce apples and bananas.d. Identify the good that Home should specialize in and why.

Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Answered: Suppose that in the UK 15 million cars…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 4PA

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Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
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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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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. 1. Why can't the nation produce both 3 guns and 4 butters? 2. Why can't the nation produce both 1 gun and 2 butters? 3. What is the opportunity cost of guns in this nation?
Q66 Katie and Hugh are producing pies and jars of pickles. Katie can produce either 200 jars of pickles or 100 pies per month. Hugh can produce either 800 jars of pickles or 200 pies per month. Which of the following statements is correct? a. Katie's opportunity cost of producing 1 jar of pickles is 0.5 pies. b. Katie's opportunity cost of producing 1 jar of pickles is 2 pies. c. Hugh's and Katie's opportunity costs of producing are the same. d. Hugh's opportunity cost of producing 1 pie is 0.25 jars of pickles. e. Hugh's opportunity cost of producing 1 jar of pickles is 4 pies. Clear my choice ◄ Midterm 2 Jump to...
Suppose an economy produces two goods: food and machines. this economy always operates on its productions possibilities frontier. last year it produced 50 units of food and 30 machines. This year and experience a Technological advance and it’s machine making industry. As a result of this year the society wants to produce 55 units of food and 30 machines which of the following statements is true? A) The technological advance reduced the amount of resources needed to produce 30 machines. These resources could be used to produce more food. B) because the technological advance occurred in the machine making industry increases and output can only occur in the machine industry. C) in order to increase food production in these circumstances without reducing machine production the economy must reduce inefficiencies. I need help with understanding this.
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Suppose that in the UK 15 million cars could be produced with the same resources as 13 million airplanes. Suppose that in Poland 15 million cars could be produced with the same resources as 14 million airplanes. Which country has a lower opportunity cost in producing cars and why?