Homework Answers
Opportunity cost of producing cloth in United states = (100/100)= 1 ton of wheat.
Opportunity cost of producing cloth in Mexico = (40/60) = 0.67 ton of wheat.
Opportunity cost of producing wheat in United states = 100/100= 1 tons of cloth.
Opportunity cost of producing wheat in Mexico = (60/40)= 1.5 tons of cloth.
(i) United states has a comparative advantage in the production of wheat over Mexico because it has the lower opportunity cost for the production of wheat.
(ii) Mexico has a comparative advantage in the production of Cloth over United states because it has the lower opportunity cost for the production of cloth.
(iii) The cost of producing one more unit of cloth in United states = 1 ton of of wheat.
The cost of producing one more unit of cloth in Mexico - 0.67 tons of wheat.
(iv) Comparative advantage : Comparative advantage is based on the opportunity cost of producing a good. If a Country can produce a particular good at a lower opportunity cost than any other country then it is said to have a comparative advantage.
Absolute advantage: Absolute advantage is when a Country can produce particular goods at a lower cost than another country with all of its given resources.
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Question 1: Exhibit 1 - Production possibilities curves for U.S. and Mexico? Cloth (tons per day)...
Question 1: Exhibit 1- Production possibilities curves for U.S. and Mexico? 100 100 Cloth Cloth 8D 80 (tons per 60...
Question 1: Exhibit 1- Production possibilities curves for U.S. and Mexico? 100 100 Cloth Cloth 8D 80 (tons per 60 (tons per day) day) 60 40 40 PPCUS PPCMexico 20 20 20 40 60 0 80 100 0 20 60 80 100 40 Wheat Wheat (tons per day) (tons per day) Use the Production Possibilities Curves for U.S. and Mexico to determine i. In what commodity do United States has a comparative advantage over Mexico? ii. In what commodity do...
T or F: If both Brazil and the United States have straight-line production-possibilities curves, the U.S....
T or F: If both Brazil and the United States have straight-line production-possibilities curves, the U.S. can use all its resources to produce either 10 tons of coffee or 10 tons of wheat per year, and Brazil can use all of its resources to produce either 4 tons of coffee or 2 tons of wheat per year, Brazil has a comparative advantage in coffee production.
please help with this Wendy's Production Possibilities Quantity Item per Day Food 10 | Cloth Calvin's...
please help with this
Wendy's Production Possibilities Quantity Item per Day Food 10 | Cloth Calvin's Production Possibilities Quantity Item per Day Food Cloth 1. Calculate their opportunity costs. Wendy's Opportunity Cost To get 1 more: Opportunity Cost Food Cloth Calvin's Opportunity Cost To get 1 more: Opportunity Cost Food Cloth 2. Who has a comparative advantage in what? Who should specialize in what? Comparative Advantage Should in: specialize in: Wendy Calvin
mQuestion 16 0 12.5 pts U.S. UK Wheat 126 12 Cloth 6 18 The table above...
mQuestion 16 0 12.5 pts U.S. UK Wheat 126 12 Cloth 6 18 The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour). According to the classical theory of trade, which of the following is true? The United States will gain more from trade than the United Kingdom. (WRONG) There is no basis for trade between these countries. The United States has an absolute advantage in the production of cloth....
suppose the united states is currently producing 200 tons of hamburgers and 90 tons of tacos mexico is cutrently produc...
suppose the united states is currently producing 200 tons of
hamburgers and 90 tons of tacos mexico is cutrently producing 20
tons of hamburgers and 50 tons of tacoes if the united states and
mexico each specialize in producing only one good the good for
which each has a comparitive advantage then a toal of ? additional
tons of hamburgers can be produced for the two countries combines
and a total of ? additional tons of tacoes can be produced...
Table 2.1. Output Possibilities of the U.S. and the U.K. Output Possibilities of the U.S. and...
Table 2.1. Output Possibilities of the U.S. and the U.K. Output Possibilities of the U.S. and the U.K. Output per Worker Om Output per Worker per day, Tons of per day, Televisions Steel Country United States United Kingdom 20 Referring to Table 2.1, the opportunity cost of producing one ton of steel in the United States is: 45 televisions 20 televisions O 10 televisions 0 3 televisions
Table: Production Possibilities in the United States and Colombia Colombia United States Quantity of coffee (tons...
Table: Production Possibilities in the United States and Colombia Colombia United States Quantity of coffee (tons Quantity of computers uantity ofQuantity of coffee (tons) computers 100 80 60 40 20 10 a) Look at the table Production Possibilities in the United States and Colombia. Which country should export coffee and which country should export computers? Justify your answer b) Look at the table Production Possibilities in the United States and Colombia. Suppose that in autarky, Colombia produces 10 tons of...
2. Problems and Applications Q2 An American worker can produce either 5 cars or 9 tons...
2. Problems and Applications Q2 An American worker can produce either 5 cars or 9 tons of grain a year. A Japanese worker can produce either 3 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car 1 Ton...
Soybeans USA Mexico 90 Avocados 1. Based on the above PPFs for the United States and...
Soybeans USA Mexico 90 Avocados 1. Based on the above PPFs for the United States and Mexico, which region has an absolute advantage in Soybean production? Which region has an absolute advantage in Avocado production? (20 Points) 1. Please complete the following opportunity cost table. (Hint: In order to produce one unit of Soybeans how many Avocados must U.S./Mexico give up and in order to produce one unit of Avocados how much Soybeans must U.S./Mexico give up.) (20 Points) Opportunity...
Shown below are the production possibilities curves for two nations: the United States and Chile. Suppose...
Shown below are the production possibilities curves for two nations: the United States and Chile. Suppose these two nations do not currently engage in international trade or specialization, and suppose that points A and a show the combinations of wheat and copper they now produce and consume United States Chile 10 10 10 10 Copper (thousands of pounds) Copper (thousands of pounds) 1. What is the United States opportunity cost for wheat and copper - show your math work? 2....
Question 1: Exhibit 1- Production possibilities curves for U.S. and Mexico? 100 100 Cloth Cloth 8D 80 (tons per 60 (tons per day) day) 60 40 40 PPCUS PPCMexico 20 20 20 40 60 0 80 100 0 20 60 80 100 40 Wheat Wheat (tons per day) (tons per day) Use the Production Possibilities Curves for U.S. and Mexico to determine i. In what commodity do United States has a comparative advantage over Mexico? ii. In what commodity do...
please help with this
Wendy's Production Possibilities Quantity Item per Day Food 10 | Cloth Calvin's Production Possibilities Quantity Item per Day Food Cloth 1. Calculate their opportunity costs. Wendy's Opportunity Cost To get 1 more: Opportunity Cost Food Cloth Calvin's Opportunity Cost To get 1 more: Opportunity Cost Food Cloth 2. Who has a comparative advantage in what? Who should specialize in what? Comparative Advantage Should in: specialize in: Wendy Calvin
mQuestion 16 0 12.5 pts U.S. UK Wheat 126 12 Cloth 6 18 The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour). According to the classical theory of trade, which of the following is true? The United States will gain more from trade than the United Kingdom. (WRONG) There is no basis for trade between these countries. The United States has an absolute advantage in the production of cloth....
suppose the united states is currently producing 200 tons of
hamburgers and 90 tons of tacos mexico is cutrently producing 20
tons of hamburgers and 50 tons of tacoes if the united states and
mexico each specialize in producing only one good the good for
which each has a comparitive advantage then a toal of ? additional
tons of hamburgers can be produced for the two countries combines
and a total of ? additional tons of tacoes can be produced...
Table 2.1. Output Possibilities of the U.S. and the U.K. Output Possibilities of the U.S. and the U.K. Output per Worker Om Output per Worker per day, Tons of per day, Televisions Steel Country United States United Kingdom 20 Referring to Table 2.1, the opportunity cost of producing one ton of steel in the United States is: 45 televisions 20 televisions O 10 televisions 0 3 televisions
Table: Production Possibilities in the United States and Colombia Colombia United States Quantity of coffee (tons Quantity of computers uantity ofQuantity of coffee (tons) computers 100 80 60 40 20 10 a) Look at the table Production Possibilities in the United States and Colombia. Which country should export coffee and which country should export computers? Justify your answer b) Look at the table Production Possibilities in the United States and Colombia. Suppose that in autarky, Colombia produces 10 tons of...
2. Problems and Applications Q2 An American worker can produce either 5 cars or 9 tons of grain a year. A Japanese worker can produce either 3 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Complete the following table with the number of workers needed to make one car or 1 ton of grain in the United States and Japan. Workers Needed to Make 1 Car 1 Ton...
Soybeans USA Mexico 90 Avocados 1. Based on the above PPFs for the United States and Mexico, which region has an absolute advantage in Soybean production? Which region has an absolute advantage in Avocado production? (20 Points) 1. Please complete the following opportunity cost table. (Hint: In order to produce one unit of Soybeans how many Avocados must U.S./Mexico give up and in order to produce one unit of Avocados how much Soybeans must U.S./Mexico give up.) (20 Points) Opportunity...
Shown below are the production possibilities curves for two nations: the United States and Chile. Suppose these two nations do not currently engage in international trade or specialization, and suppose that points A and a show the combinations of wheat and copper they now produce and consume United States Chile 10 10 10 10 Copper (thousands of pounds) Copper (thousands of pounds) 1. What is the United States opportunity cost for wheat and copper - show your math work? 2....
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