Consider two countries that use labor as an input to produce two goods. • In South Korea, one hour of a worker's labor can produce either 5 bags or 10 bread. • In Japan, one hour of a worker's labor can produce either 20 bags or 20 bread. The information provided is illustrated as follows: South Korea Japan Bags 5 20 Bread 10 Which country should specialize in the production of bread? 20 Assume that the maximum amount of labor hours is 100 hours.
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- Give the three reasons that explain why the division of labor increases an economys level of production.Suppose that initially Denali uses 1 million hours of labor per week to produce pistachios and 3 million hours per week to produce chinos, while Sequoia uses 3 million hours of labor per week to produce pistachios and 1 million hours per week to produce chinos. As a result, Sequoia produces 24 million pounds of pistachios and 32 million pairs of chinos, and Denali produces 12 million pounds of pistachios and 72 million pairs of chinos. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces. Sequoia's opportunity cost of producing 1 pound of pistachios is4 pairs of chinos, and Denali's opportunity cost of producing 1 pound of pistachios is2 pairs of chinos. Therefore,Sequoia has a comparative advantage in the production of pistachios, andDenali has a comparative advantage in the production of chinos. Suppose that each country…Consider the “production” of food, which uses various types of inputs: “labor” (e.g., cooks); “capital” (e.g., restaurants and equipment); and “raw materials” (e.g., ingredients). Suppose that labor accounts for 50% of fast food costs while capital and raw materials account for 25% each. Briefly explain whether each of the following parts are true, false, or uncertain a. If raw material prices double (i.e., increase by 100%) while labor and capital prices are unchanged, then using the same mix of labor, capital, and raw materials will require a 25% increase in expenditures. b. If raw material prices double (i.e., increase by 100%) while labor and capital prices are unchanged, then achieving the same health outcomes (i.e., producing the same amount of “output”) will require a 25% increase in expenditures.
- Republika UPLB has 50 workers. It produces only coffee and white cheese. The production of these two goods has the following labor requirements. Coffee Output 60 56 48 36 20 0 Labor Requirements 50 40 30 20 10 0 White Cheese Output 0 2 4 6 8 10 Labor Requirements 0 10 20 30 40 50 If Republika UPLB is producing 48 units of coffee and 2 units of white cheese, is it using its inputs efficiently?What is the difference between technology and technological change? A. Technology is the development of new products, while technological change is when a firm is able to produce more output with the same inputs. B. Technology is the process of using inputs to make output, while technological change is when a firm is able to produce the sameoutput using fewer inputs. C. Technology is the development of new products, while technological change is when a firm is able to produce the same output with fewer inputs. D. Technology is when a firm is able to produce moreoutput using the sameinputs, while technological change is the process of using inputs to make output. E. Technology is the process of using inputs to make output, while technological change is when a firm is able to produce more output using more inputs.Consider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 1. How many units of corn will the US produce should it exhaust all its labor force to produce corns? Group of answer choices 20 16 25 Not enough data 2. How many units of corn will India produce should it exhaust 3/4s of its labor force to produce corns? Group of answer choices 20 16 25 12 3. Between the USA and India, which country has a comparative advantage in the production of automobiles? Group of answer choices India USA None of the countries Not enough data 4. How many units of automobiles will the US produce should it exhaust half of its labor force to produce automobiles? Group of answer choices 20 10 25 Not enough data 5. How many units of automobiles will India produce should it exhaust all its labor force to produce automobiles? Group of answer…
- 37. Which of the following is the interpretation of production function Y = F (K, L)? a.Output depend on K and L b.If K Increases, L also needs to increase c.If K increases, L needs to decrease d.If K and L Increases Y increases as well2.6 The Production Function and Emigration. During the potato famine, many workers left Ireland. Show how this affected output using a production function.There are two countries in the world economy: Home and Foreign. Home has 3000 units of labor available. It can produce two goods, coffee (C) and sugar (S). The unit labor requirement in coffee production at home, aLc, is 4, while the unit labor requirement in sugar production, aLs, is 10. Foreign has a labor force of 1600. Foreign’s unit requirement in coffee production, a*Lc, is 10, while the unit labor requirement in sugar production, a*Ls, is 2. Graph the production possibility frontier for both Home and Foreign. Use C in the vertical axis. What is the opportunity cost of coffee in terms of sugar in both Home and Foreign? Using the information (numbers) provided above, construct the world relative supply curve. Label it RS. The horizontal axis must show the world quantity of coffee relative to the world quantity of sugar, i.e., (Qc+Q*c)/(Qs+Q*s). The vertical axis must show the relative price of coffee with respect to the price of…
- Consider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 Still using the matrix above, let us assume that in an autarkic economy, the US can produce and consume 8 units of corn and 11 units of automobile; India can produce and consume 14 units of corn and 7 units of auto mobile. After deciding to engage in international trade, both countries agreed to trade 15 units of corn and 12 units of automobiles. How many units of automobile should each country agree to trade with each other if India will gain nothing from the trade? Group of answer choices 17 13 15 12Consider the production productivity matrix of two goods from the US and India: United States of America India Labor force 200 800 Labor per unit corn 8 50 Labor per unit automobile 10 40 Still using the matrix above, let us assume that in an autarkic economy, the US can produce and consume 8 units of corn and 11 units of automobile; India can produce and consume 14 units of corn and 7 units of auto mobile. After deciding to engage in international trade, both countries agreed to trade 15 units of corn and 12 units of automobiles. 8. How many units of corn will the USA sell to gain from the trade? Group of answer choices 12 15 8 10 9. How many units of corn will the US gain from the trade? Group of answer choices 1 2 3 4 10. How many units of automobile will the US buy to gain from the trade? Group of answer choices 10 12 15 18 11. How many units of automobile should each country agree to trade with each other if India will gain nothing from the trade?…Economics Refer to the figure above. If cars are capital intensive and furniture is labor intensive, then according to the HO theory, then this country.. (select all that apply)