production possibilities
The following table describes the production possibilities of two state in the country of Malaysia:
Wheat per Worker per Hour | Corn per Worker per Hour | |
Kedah | 6 | 6 |
Perlis | 2 | 4 |
(a) Without trade, what is the price of wheat (in terms of corn) in Kedah? What is the price in Perlis?
(b) Which state has an absolute advantage in the production of wheat and corn? Which state has a comparative advantage in the production of wheat and corn? Explain your answer.
Homework Answers
Opportunity cost of producing 1 pair of red socks (Boston) = 3/3 = 1 pair of white socks
Opportunity cost of producing 1 pair of red socks (Chicago) = 1/2 = 0.5 pair of white socks
a)
Price of 1 pair of white socks in Boston = 1 pair of red socks
Price of 1 pair of white socks in Chicago = 1/0.5 = 2 pair of red socks
b)
Boston has an absolute advantage in production of both socks. (more pairs can be produced per worker per hour)
Boston has a comparative advantage in production of white socks while Chicago has a comparative advantage in production of red socks. (lower opportunity cost)
The following table describes the production possibilities of twocities in the country of Baseballia: Pairs of...
The following table describes the production possibilities of twocities in the country of Baseballia: Pairs of RedSocks Pairs of White Socks per Worker perHour per Worker per Hour Boston 3 3 Chicago 2 1 a. Without trade, what is the price of white socks (in terms of redsocks) in Boston? And, what is the price in Chicago? b.which city has an absolute advantage in the production of each color sock? Which city has a comparative advantage in the production of...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour 2 Boston Chicago 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in...
The following table describes the production possibilities of two cities in the country of Baseballa: Pairs...
The following table describes the production possibilities of two cities in the country of Baseballa: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston Chicago Without trade, the price of a pair of white socks (in terms of red socks) in Boston of red socks of red socks, and in Chicago it is has an absolute advantage in the production of red socks, and has an absolute advantage in the production of...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston Chicago 5 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is, is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in...
6. Problems and Applications Q6 The following table describes the production possibilities of two cities in...
6. Problems and Applications Q6 The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 5 2 Chicago 4 3 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is of red socks, and in Chicago it is of red socks. has an absolute advantage in the production of red...
Attempts Average: IS Problems and Applications 26 The following table describes the production possibilities of two...
Attempts Average: IS Problems and Applications 26 The following table describes the production possibilities of two aties In the country of Baseballia: Pairs of Red socks per Worker per Hour Pairs of white Socks per Worker per Hour Boston Chicago without trade, the price of a pair of white socks (in terms of red socks) in Boston Is ▼ of red socks, and in Chicago it s of red socks has an absolute advantage in the production of red socks,...
The following table describes the production possibilities of two cities in the country of Baseballia: Pairs...
The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston 3 6 Chicago 5 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is (1/2 pair, 2 pairs, 4/5 pair, 1 1/4 pairs) of red socks, and in Chicago it is (1/2 pair, 2 pairs, 4/5 pair, 1 1/4 pairs)...
Attempts: Do No Harm: /5 6. Problems and Applications Q6 The following table describes the production...
Attempts: Do No Harm: /5 6. Problems and Applications Q6 The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Bostorn Chicago 1/2.2. 4/5.181/4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is of red socks, and in Chicago it is of red socks. 1/2.2. 4/5. 181/4 boston/chicago boston/chicago has...
Q 1: Clancy and Eileen are farmers. Each one owns a 20-acre plotof land. The...
Q 1: Clancy and Eileen are farmers. Each one owns a 20-acre plot
of land. The following table shows the amount of corn and rye each
farmer can produce per year on a given acre. Each farmer chooses
whether to devote all acres to producing corn or rye or to produce
corn on some of the land and rye on the rest.CornRye(Bushels per acre)(Bushels per acre)Clancy205Eileen5010On the following graph, use the blue line (circle symbol) to
plot Clancy's production possibilities...
Comparative Advantage and International Trade Portfolio The production possibilities curves above show all the possible combinations...
Comparative Advantage and International Trade
Portfolio
The production possibilities curves above show all the
possible combinations of helicopters and scooters that two towns,
Millerville and Jamestown, can create using equal amounts of
resources.
Explain which country has the absolute advantage in the
production of helicopters.
Using the concept of opportunity cost that you learned
in this lesson, explain which country has the comparative advantage
in the production of scooters. You may include a table for your
explanation. (Hint: Is this...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour 2 Boston Chicago 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in...
The following table describes the production possibilities of two cities in the country of Baseballa: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston Chicago Without trade, the price of a pair of white socks (in terms of red socks) in Boston of red socks of red socks, and in Chicago it is has an absolute advantage in the production of red socks, and has an absolute advantage in the production of...
The following table describes the production possibilities of two cities in the country of Baseballia Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Boston Chicago 5 4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is, is of red socks, and in Chicago it of red socks. has an absolute advantage in the production of red socks, and has an absolute advantage in...
Attempts Average: IS Problems and Applications 26 The following table describes the production possibilities of two aties In the country of Baseballia: Pairs of Red socks per Worker per Hour Pairs of white Socks per Worker per Hour Boston Chicago without trade, the price of a pair of white socks (in terms of red socks) in Boston Is ▼ of red socks, and in Chicago it s of red socks has an absolute advantage in the production of red socks,...
Attempts: Do No Harm: /5 6. Problems and Applications Q6 The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker per Hour Bostorn Chicago 1/2.2. 4/5.181/4 Without trade, the price of a pair of white socks (in terms of red socks) in Boston is of red socks, and in Chicago it is of red socks. 1/2.2. 4/5. 181/4 boston/chicago boston/chicago has...
Q 1: Clancy and Eileen are farmers. Each one owns a 20-acre plot
of land. The following table shows the amount of corn and rye each
farmer can produce per year on a given acre. Each farmer chooses
whether to devote all acres to producing corn or rye or to produce
corn on some of the land and rye on the rest.CornRye(Bushels per acre)(Bushels per acre)Clancy205Eileen5010On the following graph, use the blue line (circle symbol) to
plot Clancy's production possibilities...
Comparative Advantage and International Trade
Portfolio
The production possibilities curves above show all the
possible combinations of helicopters and scooters that two towns,
Millerville and Jamestown, can create using equal amounts of
resources.
Explain which country has the absolute advantage in the
production of helicopters.
Using the concept of opportunity cost that you learned
in this lesson, explain which country has the comparative advantage
in the production of scooters. You may include a table for your
explanation. (Hint: Is this...
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