Three students are working on a group project. The project involves three distincttasks: research, writing, and presentation. One student, Jack, is faster at all three ofthese tasks than the other members of the group.(a) Does Jack have an absolute advantage in all three tasks?(b) Does Jack have a comparative advantage in all three tasks?(c) Explain in approximately 1-4 sentences why this group will be more efficient ifthey specialize according to comparative advantage rather than absolute advantage.

Absolute advantage refers to the economic concept which is used for referring to the production of…

Answered: Three students are working on a group…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 5PA

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scenario Production Advantage and Opportunity CostsAssume there are two countries, the United States and France, and two goods, automobiles andcomputers.The table presented below shows the number of automobiles and computers that the United States andFrance can produce with the same amount of resources.United States FranceAutomobiles 120 100Computers 60 55Source: Pearson Education Inc. 1.1 Which country has an absolute advantage in computer production? Motivate your answer.1.2 Which country has a comparative advantage in the production of automobiles? Motivateyour answer. 1.3 Assume these countries trade with one another under the conditions of free trade. Whichcountry will specialise in the production of automobiles? Motivate your answer. 1.4 If free trade exists between the United States and France, what are the highest and lowestlevels for the price of an automobile (expressed in terms of computers)? Motivate youranswer by stating which level favours the United States and France.
11 A trader has an absolute advantage in orange production if his unit-labor requirement in oranges is _____ and his labor productivity is _____ A. lower; higher B. higher; lower C. lower; lower D. higher; higher E. moderate; moderate
A worker in country A can produce either 5 computers or 45 tons of rice, while a worker in country B canproduce either 7 computers or 42 tons of rice. a. Graph the production possibilities curve for each country. On which point of the curve would eachcountry produce if the workers spent half of their time producing each good? b. Which country has absolute advantage? Which country has comparative advantage? In theproduction of rise Country A absolute advantage c. If there was trade, which country would specialize in the production of rice? d. At what price of computers would the countries agree to trade?
As the manager at a local florist, you supervise two employees, Anita and Jerome. There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and it takes her 40 minutes to make one delivery. It takes Jerome 10 minutes to finish one floral arrangement and it takes him 30 minutes to make one delivery. a. Who has a comparative advantage in floral arrangements? What about deliveries? b. Suppose, initially, Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day doing deliveries. If you changed their tasks so that each individual did nothing but the task for which they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?
1.Use the marginal analysis technique to determine the quantity of organic coconut oil that will maximize net benefits. Present results in table form and highlight the maximizinglevel. 2. Graphically illustrate letter B. Separate the graphs for TB – TC approach, MB = MC rule, and net benefit (maximum). The sequence of the graph: (1) TB – TC approach (topmost graph); (2) net benefit (middle graph); and (3) MB, MC, & MNB (last, 3rd graph). But be sure that the graphs are parallel in X-axis so as to be consistent in the results. (Label your graphs accordingly and appropriately.)
Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enables more healthcare wilt line same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? Figure 2.4 Productive and Allocative Efficiency
What is comparative advantage?
7 Ann and Bob are dividing a cake made up by 1/3 chocolate parts and 2/3 vanilla parts. Ann likes vanilla twice as much as chocolate and Bob likes vanilla just as much as he likes chocolate. What division of the cake is suggested by the egalitarian solution? By the competitive equilibrium with equal incomes? Also name one allocation that is not Pareto optimal.
What are the definitions of the following economic principles and give 1 brief example each: - scarcity principle? - cost-benefit principle? - principle of unequal cost? - principle of comparative advantage? - principle of increasing opportunity cost? - equilibrium principle? - efficiency principle?
4. Answer both questions 2. Suppose a particular stretch of river can be used to build a hydropower dam that generates Q Kilowatt-hours (MWh) of electricity. The electricity price is 1.44 per Kilowatt-hour. The opportunity cost of producing power is C = $0.0007 x Q2 per hour. The opportunity cost of the dam is due to the foregone net benefit that would have resulted from recreation activity related to the river. What is the net benefit of the dam if the dam has optimal size? 3. Assume that the society should decide on how to allocate 24 units of depletable resource between two periods (period 1 and period 2). Benefit and cost of extracting qi units of depletable resource in period i = 1,2 are Bi = 127qi – 2qi2 and Ci = 17qi respectively. How much should the society extract in period 1 if the discount rate is 2%?
a) sen What is: (not more than 3 sentences for each of them) Absolute advantage? Comparative Advantage? Heckser Ohlin Theorem? Difference of Heckscher Ohlin Theorem from Comparative advantage theory?
Practice Question 9 Table 1 James Lucy Wagons 16 18 Tricycles 32 24 Table 1 shows the output per week of two people, James and Lucy. They can either devote their time to making wagons or making tricycles. What is James's opportunity cost of making a tricycle? Group of answer choices 1. 3/4 of a wagon 2. 2 tricycles 3. 1/2 of a tricycle 4. 1/2 of a wagon

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