Q.2.2 The information in Table 2 shows the production of cloth and maize, perworker, in two countries. Use this information to answer Q.2.2.1 to Q.2.2.3.Table 2Product per labourerZambiaMalawiCloth (metres)10040Maize (kilograms)5010Q.2.2.1 Calculate the opportunity costs of producing cloth in Zambia and in(4)Malawi. Show your calculations.Q.2.2.2 Which country has an absolute advantage in the production of cloth?(2)Justify your answer.

Opportunity cost is the benefit of the next best alternates.

Answered: The information in Table 2 shows the…

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 2PA

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Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
Question 4 There is now also another country, Foreign, there is a labor force of 800. Foreign's unit labor requirement in watermelon production is 5, while in kiwi production it is 1. a) how many units of watermelon can be produced? when the labor in Foreign country only produce watermelon. b) how many units of kiwi can be produced? When all the labor in Foreign country only produce kiwi. c) What is the opportunity cost of watermelon in terms of kiwi in Foreign country? d) Describe the pattern of trade. Home country should produce? Foreign country should produce? Why? e) Show that how both Home and Foreign country gain from trade.
20. Australia and New Zealand both produce wool and wine. Australia can either produce 200 litres of wine or40 tonnes of wool per week. New Zealand can either produce 40 litres of wine or 10 tonnes of wool per week.Australia’s opportunity cost of producing 1 ton of wool is equal to: (4 marks)A 200 litres of wine.B 50 litres of wine.C 40 litres of wine.D 5 litres of wine.
In France, one hour of a worker’s labor can produce either 5 cloths or 10 wines. In the US, one hour of workers labor can produce either 20 cloths or 20 wines. Can you show math work? What is the opportunity cost in France for 1 cloth? How about 1 wine? What is the opportunity cost in US of 1 cloth? How about 1 wine? Should these two countries trade? Who should make wine and who should make cloth? Why?
Combination Bananas metric tons (X axis) Coffee metric tons (Y axis) A 20,000 0 B 18,000 11,000 C 14,000 20,000 D 8,000 27,000 E 0 30,000 What is the opportunity cost (amount & item) of increasing production from 27,000 tons of coffee to 30,000 tons of coffee ? ________________ What is happening to the opportunity cost as Costa Rica produces more coffee
b. What is the opportunity cost of 1 ton of apples for the nations of Argentina and Brazil, respectively?A. 4 tons of oranges and 2 tons of orangesB. 2.5 tons of oranges and .4 tons of orangesC. .25 tons of oranges and .5 tons of oranges D. 2 tons of oranges and 4 tons of oranges E. 5 tons of oranges and .25 tons of oranges
Consider two countries, Zerka and Xena. In Zerka total annual output is worth $500 million and people work 40 million hours. In Xena total annual output is worth $600 million and people work 50 million hours. A) From the information above, in which country is productivity higher? B) Economists use the term ______________________________ to refer to the ability to produce a good using fewer inputs than another producer. C) Economists use the term ______________________________ to refer to the ability to produce a good at a lower opportunity cost than another producer.
Draw a production possibilities curve that shows the production of possibilities of the US and S Korea. See attached.
Suppose that Spain and Switzerland both produce oil and shoes. Spain's opportunity cost of producing a pair of shoes is 3 barrels of oil while Switzerland's opportunity cost of producing a pair of shoes is 11 barrels of oil. 33.3
Combination Cinnamon metric tons (X axis) Nutmeg metric tons (Y axis) A 7,000 0 B 6,000 7,000 C 4,500 11,000 D 2,500 14,000 E 0 16,000 What is the opportunity cost (amount & item) of the first 7,000 tons of nutmeg produced? ______________________ What is the opportunity cost (amount & item) of increasing production from 7,000 tons of nutmeg to 11,000 tons of nutmeg ? ________________ What is the opportunity cost (amount & item )of increasing production from 11,000 tons of nutmeg to 14,000 tons of nutmeg ? _____________ What is the opportunity cost (amount & item) of increasing production from 14,000 tons of nutmeg to 16,000 tons of nutmeg ? ________________ What is happening to the opportunity cost as Copperton produces more nutmeg? ____________________________________
American and Japanese workers can each produce 4 cars per year. An American worker can produce 10 tons of grain per year, whereas a Japanese worker can produce 5 tons of grain per year. To keep things simple, assume that each country has 100 million workers. For this situation, construct a table analogous to the table in Figure 1. Graph the production possibilities frontiers for the American and Japanese economies. For the United States, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of grain? Put this information in a table analogous to Table 1. Which country has an absolute advantage in producing cars? In producing grain? Which country has a comparative advantage in producing cars? In producing grain? Without trade, half of each country’s workers produce cars and half produce grain. What quantities of cars and grain does each country produce? Starting from a position without trade, give an example in which trade makes each country…
Figure 2-4 shows various points on three different production possibilities frontiers for a nation. 7) Refer to Figure 2-4. A movement from ________ could occur because of an influx of immigrant labor. 7) _______ A) W to Z B) Y to W C) W to V D) X to W

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