Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Mexico Hamburgers (in tons) Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 45 30 15 30 60 90 54 27 3 Which country has an absolute advantage in producing tacos?
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- 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.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?Two countries, Marland and Teckana, can produce either clothing or food using all their available resources at constant opportunity cost. The table below shows the daily production of clothing or food in Marland and Teckana. Clothing Food Marland 120 20 Teckana 80 20 (a) Which country has the absolute advantage in producing food? Explain. (b) Which country has the comparative advantage in producing food? Explain. (c) Assume the two countries specialize based on their comparative advantage. If the two countries engage in trade and one unit of food is exchanged for 5 units of clothing, will these terms of trade be mutually beneficial? Explain. (d) Suppose Teckana invented new equipment to only increase the production of clothing. (i) Draw a correctly labeled graph of Teckana’s initial production possibilities curve, with clothing on the horizontal axis and food on the vertical axis. Plot the numerical values above on the graph. (ii) Show the effect of the new…
- Van and Amy are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. ______ has an absolute advantage in the production of corn, andVan has an absolute advantage in the production of rye. _____ opportunity cost of producing 1 bushel of rye is ______ bushels of corn, whereas Amy's opportunity cost of producing 1 bushel of rye is_____ bushels of corn. Because Van has a______ opportunity cost of producing rye than Amy____ has a comparative advantage in the production of rye, and_____ has a comparative advantage in the production of corn.Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following question: Who has absolute advantage in the production of hamburgers and who has absolute advantage in the production of pancakes?Consider the following scenario. Xavier and Yannis can switch between producing baskets and producing birdhouses. Xavier uses 8 hours to produce 1 basket and 2 hours to produce 1 birdhouse. Yannis uses 1.5 hours to produce 1 basket and 2 hours to produce 1 birdhouse. In 24 hours, Xavier can produce 3 baskets and 12 birdhouses, and Yannis can produce 16 baskets and 12 birdhouses. If they decided to trade with one another, at which of the following prices would both Xavier and Yannis gain from trade? Justify your answer 30 baskets for 15 birdhouses 30 baskets for 18 birdhouses 30 baskets for 24 birdhouses
- Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. Part 2 United States Mexico Hamburgers (in tons) Tacos (in tons) Hamburgers (in tons) Tacos (in tons) 0 270 0 150 100 180 20 100 200 90 40 50 300 0 60 0 Part 3 Which country has an absolute advantage in producing tacos? The United States Mexico . Part 4 Which country has a comparative advantage in producing tacos? The United States Mexico . Part 5 Suppose the United States is currently producing 200 tons of hamburgers and 90 tons of tacos and Mexico is currently producing 40 tons of hamburgers and 50 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of enter your response here ___additional ton(s) of hamburgers…Assume that Natalie and Grace have a garden behind their house and can each pick mushrooms and plums. Each week Natalie can pick a maximum of 20 plums or 100 mushrooms and Grace can pick a maximum of 40 plums or 120 mushrooms. 1. After taking an economics class Natalie goes to her friend Grace and says they can increase production by working together and specializing. Grace says that she would prefer to work alone because she is better at both goods. What type of advantage does Grace have and is she correct in her assessment? 2. Calculate the comparative advantage for both Natalie and Grace for plums and mushrooms 3. Who should specialize in producing mushrooms and who should specialize in producing plums. 4. Assume that when they did not work together, Natalie picked 10 plums and 50 mushrooms and Grace picked 20 plums and 60 mushrooms. When the decision to instead specialize, how many more total plums and mushrooms were they be able to pick? (No trade rate, just look at overall…Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use thier their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following questions: a) Who has absolute advantage in the production of hamburgers? Who has absolute advantage in the production of pancakes? b) Who has comparative advantage in the production of hamburgers? Who has comparative advantage in the production of pancakes? c) Can Bob and Jake both benefit from trade if the terms of trade are one pancake per hamburger? Why or why not?
- Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day. a. (Anita, Jerome) ______ absolute advantage in floral arrangements. ______ (Anita, Jerome) has an absolute advantage in deliveries. b. Anita’s opportunity cost of making one floral arrangement is ________ ( 1.33, 0.75, .33, 3) deliveries. Anita’s opportunity cost of making one delivery is ______ (1.33, 0.75, .33, 3) floral arrangments. c. Jerome’s opportunity cost of making one floral arrangement is _______(.75,3,1.33..33) deliveries. Jerome’s opportunity cost of making one delivery is (3, 1.33, .75, .33) floral arrangements. d. (Jerome, Anita)_____ has a comparative advantage in floral arrangements. (Jerome, Anita)_____ has…Bob and Erik are both experienced in making pizzas and burgers. In one day, Bob can make 8 pizzas or 32 burgers. With the same effort and in the same day, Erik can make 12 pizzas or 36 burgers. Who has the absolute advantage in making pizzas and who has the absolute advantage in making burgers? Who has the comparative advantage in each activity? Show your derivations. According to the principle of comparative advantage, in which activity should each person (Bob and Erik) specialize in order to gain from trade? 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.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…
