EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 1, Problem 1.9P
To determine
To evaluate:The amount of each good to be produced to meet the goal of equal consumption and also show production point on a graph of the
b)
To determine
To evaluate:The possible combinations of X and Y, thecountry will consume in the given scenario.
c)
To determine
To evaluate:The final choice that the consumers of this country make as per the consumption possibilities outlined in (b).
d)
To determine
To evaluate:The cost imposed onthe country by
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Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor:
A: Which country is capital abundant and which one is labor abundant? Explain!
Now suppose the production one unit of good X requires 3 units of capital and 2 units of labor and the production of one unit of good Y requires 6 units of capital and 3 units of labor.
B: Which good is the capital intensive good and which one is the labor intensive good? Explain!!
C: Which country should specialize in and export good X and which country should specialize in and export good Y. Explain!!!
D: Using appropriate graphs, demonstrate that trade is beneficial if two countries have identical technology but different preferences. Does a country specialize in producing the good where they have the strongest preference? Explain
DO D
Foe answers for A, B and C -…
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor:
A: Which country is capital abundant and which one is labor abundant? Explain!
Now suppose the production one unit of good X requires 3 units of capital and 2 units of labor and the production of one unit of good Y requires 6 units of capital and 3 units of labor.
B: Which good is the capital intensive good and which one is the labor intensive good? Explain!!
C: Which country should specialize in and export good X and which country should specialize in and export good Y. Explain!!!
D: Using appropriate graphs, demonstrate that trade is beneficial if two countries have identical technology but different preferences. Does a country specialize in producing the good where they have the strongest preference? Explain
The production possibilities frontier curve illustrates that
a.
an economy's capacity to produce is unrelated to its population.
b.
if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced.
c.
an economy will automatically move toward a point at which all of its resources are being used inefficiently.
d.
if all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.
Chapter 1 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 1.2 - Prob. 1MQCh. 1.2 - Prob. 2MQCh. 1.3 - Prob. 1TTACh. 1.3 - Prob. 2TTACh. 1.4 - Prob. 1TTACh. 1.4 - Prob. 2TTACh. 1.4 - Prob. 1MQCh. 1.4 - Prob. 2MQCh. 1.4 - Prob. 1.1MQCh. 1.4 - Prob. 1.2MQ
Ch. 1.5 - Prob. 1TTACh. 1.5 - Prob. 2TTACh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQCh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10P
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