Principles of Microeconomics
11th Edition
ISBN: 9780133024166
Author: Karl E. Case
Publisher: PEARSON
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Question
Chapter 20, Problem 4P
(a)
To determine
Identify the absolute advantage in the production of wheat and soybean.
(b)
To determine
Identify the
(c)
To determine
Identify the
(d)
To determine
Identify the comparative advantage in the production.
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The following table gives recent figures for yield per acre in Illinois and Kansas :
Illinois: WHEAT 48 SOYBEANS 39
Kansas: WHEAT40 SOYBEANS 24
If we assume that farmers in Illinois and Kansas use the same amount of labor , capital , and fertilizer , which state has an absolute advantage in wheat production ? soybean production ?
If we transfer land out of wheat into soybeans , how many bushels of wheat do we give up in Illinois per additional bushel of soybeans produced in Kansas ?
Which state has a comparative advantage in wheat produc tion ? in soybean production ?
The following table gives the distribution of land planted for each state in millions of acres in the same year .
Illinois TOTAL ACRES UNDER TILL 22.9
WHEAT 1.9 ( 8.3 % )
SOYBEANS 9.1 ( 39.7 % )
Kansas TOTAL ACRES UNDER TILL 20.7
WHEAT 11.8 ( 57.0 % )
SOYBEANS1.9 ( 9.2 % )
5. Are these data consistent with your answer to part 3 ? Explain .
Country A Country B
No. of pencils 100 50
produced
pounds of paper
produced 150 150
a)Country A and Country B can both produce paper and pencils, according to the table above and using the same amount of time and resources. Which country has the absolute advantage in producing each good?
choices
Country A has absolute advantage in pencils, but neither country has absolute advantage in paper
Country A has absolute advantage in both
Country B has absolute advantage in both
Country B has absolute advantage in paper, but Country A has absolute advantage in pencils
Neither country has absolute advantage in either good
The following table gives recent figures for yield per acre in Illinois and Kansas :
Illinois: WHEAT 48 SOYBEANS 39
Kansas: WHEAT40 SOYBEANS 24
If we transfer land out of wheat into soybeans , how many bushels of wheat do we give up in Illinois per additional bushel of soybeans produced in Kansas ?
Which state has a comparative advantage in wheat produc tion ? in soybean production ?
The following table gives the distribution of land planted for each state in millions of acres in the same year .
Illinois TOTAL ACRES UNDER TILL 22.9
WHEAT 1.9 ( 8.3 % )
SOYBEANS 9.1 ( 39.7 % )
Kansas TOTAL ACRES UNDER TILL 20.7
WHEAT 11.8 ( 57.0 % )
SOYBEANS1.9 ( 9.2 % )
Are these data consistent with your answer to question 2? Explain .
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