Question

Question 27 (Mandatory) (5 points) Production Possibilities Schedule Country X Country Y Choice Coffee Sugar Coffee Sugar А 2

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer :

From the above given table it can be concluded that :

Country X can either produce 200 units and of coffee (point A) or 200 units of sugar (point F)

Thus the opportunity cost to Country X for producing 1 unit of coffee = (200/200) units of sugar = 1 unit of sugar

Now, Country Y can either produce 100 units of coffee (point A) or 150 units of sugar (point F)

Thus the opportunity cost to Country Y for producing 1 unit of coffee is = (150/100) units of sugar = 1.5 units of sugar

Thus Country X has a comparative advantage in the production of coffee with respect to Country Y, since its opportunity cost for producing coffee is lower (1 unit of sugar < 1.5 units of sugar).

Similarly Country Y has a comparative advantage in the production of sugar with respect to Country X.

Also by rule countries should focus on the production of only those goods where it has a comparitive advantage

Thus Country X should produce coffee and export it to Country Y and simultaneously Country Y should produce sugar and export it to Country X.

Answer : Option D

Add a comment
Know the answer?
Add Answer to:
Question 27 (Mandatory) (5 points) Production Possibilities Schedule Country X Country Y Choice Coffee Sugar Coffee...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The elasticity of supply for a good equals 1.0. The buyer pays the whole tax burden when the elasticity of demand equals...

    The elasticity of supply for a good equals 1.0. The buyer pays the whole tax burden when the elasticity of demand equals A. 0.5 B. None of the above answers is correct because when the elasticity of supply equals 1.0, the suppliers pay all of the tax. C. 0 D. 0.5 E. 1.0 The occurrence of a deadweight loss indicates that the market is efficient. T / F Production Possibilities Schedule Country X Country Y Choice Coffee Sugar Coffee Sugar...

  • 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...

  • Good X Country 1 Country 2 150 Good X 120 90 95 80 72 с А...

    Good X Country 1 Country 2 150 Good X 120 90 95 80 72 с А ICY 62 60 c IC 50 o IC 30 35 E 18 33 45 55 60 78 Good Y Good Y 30 60 90 120 150 Use the figure above to answer the following question: How much does Country 2 import and export? Imports 27 and exports 60 Imports 37 and exports 37 Imports 60 and exports 60 O Imports 23 and exports 60

  • it asks to plot 4 points each please help The accompanying hypothetical production possibilities tables are...

    it asks to plot 4 points each please help The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each country can produce apples and plums. New Zealand's Production Possibilities Table M4lions of Bushels Production Alternatives Product A B с D Apples @ 23 40 60 Pluns 15 10 15 Spain's Production Possibilities Table (Millions of Bushels) Production Alternatives Product R s T U Apples @ 20 40 60 Plums 60 40 20 a plot the production possibile...

  • QUESTION 2 D E Tables Production Possibilities Schedule 1 Alternatives 4 B Consumer goods per period...

    QUESTION 2 D E Tables Production Possibilities Schedule 1 Alternatives 4 B Consumer goods per period 1 Capital goods per period 30 28 с 2 24 3 18 4 10 F 5 0 (Ref 2-1 Table Production Possibilities Schedule 1) Use Table: Production Possibilities Schedule I. The opportunity cost of producing the third unit of consumer goods is units of capital goods. a. 6 b.2 c8 d. 4 QUESTION 4 Price S P X Х PU 0, O Quantity (Ref...

  •   . The following graph shows the production possibilities frontier for the imaginary country of Contente under...

      . The following graph shows the production possibilities frontier for the imaginary country of Contente under conditions of increasing costs. In the absence of trade, the relative cost of rice in Contente in terms of phones (or the marginal rate of transformation (MRT) of rice into phones) is shown by the slope of line , tangent to the production possibilities frontier at point A. 400 360 Consumption After Trade 320 280 240 200 160 120 80 40 0 46 8...

  • Question 19 A country decides to specialize in wheat production. They now export wheat and import...

    Question 19 A country decides to specialize in wheat production. They now export wheat and import shirts. Which groups of people in this country benefit from trade? PICK all that are correct. A) wheat consumers B) wheat producers C) shirt consumers D) shirt producers Question 20 When countries specialize in producing certain goods and then freely exchange those goods for other goods with different countries, what is the advantage? A) Each country can consume at a point outside their production...

  • Question 20 (2 points) Table. Number of hours required to produce a unit of X and...

    Question 20 (2 points) Table. Number of hours required to produce a unit of X and Y. Table. Number of hours required to produce a unit of X and Y. Required hours per Required hours per Country unit of output, "unit of output, Product X Product Y South Korea 40 Japan 20 80 20 Based on the principle of absolute advantage, Korea should: O 1) Export x O2) Export Y 03) Export Yand X O4) None of the above, there...

  • A country's consumption possibilities frontier can be outside its production possibilities frontier if a

    1. A country's consumption possibilities frontier can be outside its production possibilities frontier if a. the country engages in trade. b. the citizens of the country have a greater desire to consume goods and services than do the citizens of other countries. c. the country’s technology is superior to the technologies of other countries.d. All of the above are correct. 2. A production possibilities frontier will be a straight line if a. increasing the production of one good by x...

  • Figure 1 Price ($I X 2 Pricewodd+tariff Price World Domes PriceWorld tariff Price World Domestic 0...

    Figure 1 Price ($I X 2 Pricewodd+tariff Price World Domes PriceWorld tariff Price World Domestic 0 20 40 60 80 100 120 340 160 180 200 220 240 260 Quantity Figure 1 depicts the demand and supply curves of t-shirts in a hypothetical small country (Northland). Consider Figure 1. W free trade. Northlands producer Surplus and consumer surplus respectively equal 520.54400 55.5240 55. 5220 $20 52420 550054500

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT