Macroeconomics W/connect+learnsmart>ip<
20th Edition
ISBN: 9781308140032
Author: McConnell
Publisher: MCG/CREATE
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Chapter 20, Problem 1RQ
To determine
The absolute advantage of making bicycles.
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For each hour worked, a U.S. worker can produce 4 loaves of bread, or 2 tons of
steel. Canadian workers can produce 2 loaves of bread, or 1 ton of steel per
hour. The information indicates that:
O A. Canada has comparative advantage in steel, and the U.S. has comparative advantage in
bread.
O B. neither country has comparative advantage in steel or bread.
O C. Canada has comparative advantage in bread, and the U.S. has comparative advantage in
steel.
O D. the U.S. has comparative advantage in both steel and bread.
Unsure
9- Given that, the opportunity cost for producing 1 million kg of shrimps for
island A is 1.5 million kg of papayas. While, the opportunity cost for producing 1
million kg of papayas for island B is 0.5 million kg of shrimps. The value of Y is: "
10.5
О 3.5
O 21
Poland requires 4 hours of labor to produce 1 ton of coal and 1 hour of labor to produce a bushel of
wheat. The Czech Republic requires 6 hours of labor to produce 1 ton of coal and 1 hour of labor to
produce a bushel of wheat. Suppose that Poland has 1,000 hours of labor and that it completely
specializes according to its comparative advantage. How many units of which product will it produce?
250 tons of coal
1,000 bushels of wheat
O100 bushels of wheat
4,000 tons of coal
One of the main reasons for China to actively invest in foreign companies is to
enhance the competitiveness of Chinese firms globally.
take advantage of low wages in foreign countries.
Omake best use of its technological expertise in the world market.
meet the growing demand of the high population in China.
Chapter 20 Solutions
Macroeconomics W/connect+learnsmart>ip<
Ch. 20.2 - Prob. 1QQCh. 20.2 - Prob. 2QQCh. 20.2 - Prob. 3QQCh. 20.2 - Prob. 4QQCh. 20 - Prob. 1DQCh. 20 - Prob. 2DQCh. 20 - Prob. 3DQCh. 20 - Prob. 4DQCh. 20 - Prob. 5DQCh. 20 - Prob. 6DQ
Ch. 20 - Prob. 7DQCh. 20 - Prob. 8DQCh. 20 - Prob. 9DQCh. 20 - Prob. 10DQCh. 20 - Prob. 11DQCh. 20 - Prob. 12DQCh. 20 - Prob. 13DQCh. 20 - Prob. 14DQCh. 20 - Prob. 1RQCh. 20 - Prob. 2RQCh. 20 - Prob. 3RQCh. 20 - Prob. 4RQCh. 20 - Prob. 5RQCh. 20 - Prob. 6RQCh. 20 - Prob. 7RQCh. 20 - Prob. 8RQCh. 20 - Prob. 9RQCh. 20 - Prob. 10RQCh. 20 - Prob. 11RQCh. 20 - Prob. 12RQCh. 20 - Prob. 13RQCh. 20 - Prob. 1PCh. 20 - Prob. 2PCh. 20 - Prob. 3PCh. 20 - Prob. 4P
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- Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed Number of Units to Make 1 Unit of Produced in 40 Hours Cheese Bread Cheese Bread England 1 40 10 Spain 10 England has a comparative advantage in the production of O a. cheese and Spain has a comparative advantage in the production of bread. Ob. neither good and Spain has a comparative advantage in the production of both goods. Oc. both goods and Spain has a comparative advantage in the production of neither good. O d. bread and Spain has a comparative advantage in the production of cheese.arrow_forward? -- 2. Comparative and absolute advantage Loc and Ashima are farmers. Each one owns an 18-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. Loc SQUASH (Pounds) Ashima On the following graph, use the blue line (circle symbol) to plot Loc's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Ashima's PPF. 180 162 144 126 382 3820 108 54 18 0 Maize Squash (Pounds per acre) (Pounds per acre) 8 2 9 9 90 100 270 360 450 540 MAIZE (Pounds) 630 720 010 900 5 has an absolute advantage in the production of maize, and Loc's opportunity cost of producing 1 pound of squash is pounds of maize. Because Loc has a squash is comparative advantage in the production of squash, and 10 Loc's PPF 1 Ashima's PPF (?) has an absolute advantage in the…arrow_forwardQUESTION 22 20 EN 50 PPF 40 30 20 10 50 10 20 cloth 22. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in wine? Oa) Portugal b) England 70 60 50 40 30 20 10 "T Oc) Both Ⓒd) Nether Ⓒ) Can't tel QUESTION 23 80 70 60 50 England 70 80 50 PPF PP 40 KE 30. 20 10 30 40 50 60 10 30 30 cloth 23. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in cloth? 40 30 20 10 10 O a) Portugal b) England Oc) Both Ⓒd) Nether Ⓒe) Cannot tell England QUESTION 24 60 50 40 30 20 10 70 KN 50 PPI 40 30 20 10. 50 60 10 cloth cloth 24. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in cloth? O a) Portugal b) England 10 30…arrow_forward
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