Economics Plus MyLab Economics with Pearson eText (2-semester Access) -- Access Card Package (6th Edition) (The Pearson Series in Economics)
6th Edition
ISBN: 9780134417295
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 2, Problem 2.2.14PA
To determine
Comparative advantage and total output.
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Elijah and Aneesha are farmers. Each one owns a 14-acre plot of land. The following table shows the amount of maize and squash each farmer can
produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the
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Elijah
Aneesha
SQUASH (Pounds)
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On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Aneesha's PPF.
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112
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18
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(Pounds per acre)
6
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MAIZE (Pounds)
700
Elijah's opportunity cost of producing 1 pound of squash is
squash is
pounds of maize. Because Elijah has a
comparative advantage in the production of squash, and
Elijah's PPF
Aneesha's PPF
(?)
Aneesha has an absolute advantage in the production of maize, and Aneesha has an absolute advantage in the production of squash.
2…
Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of maize and squash each farmer can
produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the
land and squash on the rest.
Elijah
Aneesha
SQUASH (Pounds)
On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond
symbol) to plot Aneesha's PPF.
160
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Elijah's opportunity cost of producing 1 pound of squash is
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has an absolute advantage in the production of maize, and
?
has an absolute advantage in the production of squash.
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According to an article on Barrons.com, "Investment firms are starting to use Al (artificial
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Barrons.com, May 16, 2019.
Does the use of Al increase or decrease labor productivity?
Increase, because the use of Al represents technological advance.
Decrease, because the use of Al increases the stock of capital
Increase, because the use of Al raises investment returns.
O Decrease, because the use of Al reduces the number of work hours in the economy.
Chapter 2 Solutions
Economics Plus MyLab Economics with Pearson eText (2-semester Access) -- Access Card Package (6th Edition) (The Pearson Series in Economics)
Ch. 2 - Prob. 1TCCh. 2 - Prob. 2TCCh. 2 - Prob. 2.1.1RQCh. 2 - Prob. 2.1.2RQCh. 2 - Prob. 2.1.3RQCh. 2 - Prob. 2.1.4PACh. 2 - Prob. 2.1.5PACh. 2 - Prob. 2.1.6PACh. 2 - Prob. 2.1.7PACh. 2 - Prob. 2.1.8PA
Ch. 2 - Prob. 2.1.9PACh. 2 - Prob. 2.1.10PACh. 2 - Prob. 2.1.11PACh. 2 - Prob. 2.1.12PACh. 2 - Prob. 2.1.13PACh. 2 - Prob. 2.1.14PACh. 2 - Prob. 2.2.1RQCh. 2 - Prob. 2.2.2RQCh. 2 - Prob. 2.2.3PACh. 2 - Prob. 2.2.4PACh. 2 - Prob. 2.2.5PACh. 2 - Prob. 2.2.6PACh. 2 - Prob. 2.2.7PACh. 2 - Prob. 2.2.8PACh. 2 - Prob. 2.2.9PACh. 2 - Prob. 2.2.10PACh. 2 - Prob. 2.2.11PACh. 2 - Prob. 2.2.12PACh. 2 - Prob. 2.2.13PACh. 2 - Prob. 2.2.14PACh. 2 - Prob. 2.2.15PACh. 2 - Prob. 2.3.1RQCh. 2 - Prob. 2.3.2RQCh. 2 - Prob. 2.3.3RQCh. 2 - Prob. 2.3.4RQCh. 2 - Prob. 2.3.5RQCh. 2 - Prob. 2.3.6RQCh. 2 - Prob. 2.3.7PACh. 2 - Prob. 2.3.8PACh. 2 - Prob. 2.3.9PACh. 2 - Prob. 2.3.10PACh. 2 - Prob. 2.3.11PACh. 2 - Prob. 2.3.12PACh. 2 - Prob. 2.3.13PACh. 2 - Prob. 2.3.14PACh. 2 - Prob. 2.3.15PACh. 2 - Prob. 2.3.16PA
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