MICROECONOMICS W/ CONNECT
21st Edition
ISBN: 9781308196077
Author: McConnell
Publisher: MCG/CREATE
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Chapter 26.2, Problem 3QQ
To determine
Opportunity Cost .
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25. 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 wine?
a) Portugal
b) England
c) Both
d) Neither
e) Cannot tell
8
Home country has 1200 units of labor available while Foreign country has 800 units of labor. In Home the unit labor requirement in apple production is 3 while in banana production is 2. Foreign unit labor requirement in apple production is 5, while in banana production it is 1. a.) What is the opportunity cost of apples in terms of bananas of Home and Foreign.? b.) In the absence of trade, what would be the price of apples in terms of bananas? c) After opening trade what product is exported and imported by Home and Foreign.? d) Between what ratios would be a possible ratio for international trade (terms of trade)
7. With one hour of work, a Canadian worker can produce 2 tons of wheat or 5 barrels ofbeers. With one hour of work, a German worker can produce 1 ton of wheat or 3 barrels of beer.Which country has the comparative advantage in producing beer?A. GermanyB. CanadaC. Neither countryD. There is not enough information to know.
Chapter 26 Solutions
MICROECONOMICS W/ CONNECT
Ch. 26.2 - Prob. 1QQCh. 26.2 - Prob. 2QQCh. 26.2 - Prob. 3QQCh. 26.2 - Prob. 4QQCh. 26 - Prob. 1DQCh. 26 - Prob. 2DQCh. 26 - Prob. 3DQCh. 26 - Prob. 4DQCh. 26 - Prob. 5DQCh. 26 - Prob. 6DQ
Ch. 26 - Prob. 7DQCh. 26 - Prob. 8DQCh. 26 - Prob. 9DQCh. 26 - Prob. 10DQCh. 26 - Prob. 11DQCh. 26 - Prob. 12DQCh. 26 - Prob. 13DQCh. 26 - Prob. 14DQCh. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQCh. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 1PCh. 26 - Prob. 2PCh. 26 - Prob. 3PCh. 26 - Prob. 4P
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