Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The following production possibilities schedules describe their potential output in tons per year:
Alpha | Beta | |||
Pearls | Pineapples | Pearls | Pineapples | |
0 | 30 | 0 | 20 | |
2 | 25 | 10 | 16 | |
4 | 20 | 20 | 12 | |
6 | 15 | 30 | 8 | |
8 | 10 | 40 | 4 | |
10 | 5 | 45 | 2 | |
12 | 0 | 50 | 0 |
a) Suppose Alpha is currently producing 6 tons of pearls and 15 tons of pineapples. If Alpha agrees to trade with Beta at a one for one exchange rate (e.g. one ton of pearls for one ton of pineapples), what would be Alpha's gains from trade? Assume that each country focuses production according to its comparative advantage and that Alpha will continue to consume 15 tons of pineapples.
Instructions: Enter your responses as a whole
number.
1.) Alpha will gain___ tons of pearls and___ tons of pineapples
(b) Suppose Beta had been producing 30 tons of pearls and 8 tons
of pineapples. What would be its gains from this trade? Assume that
each country focuses production according to its comparative
advantage and that Alpha will continue to consume 15 tons of
pineapples.
Instructions: Enter your responses as a whole
number.
2.) Beta will gain___ tons of pearls and___ tons of
pineapples
1.) Alpha will gain 9 tons of pearls and 0 tons of pineapples
2.) Beta will gain 5 tons of pearls and 7 tons of pineapples
Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples....
Alpha and Beta, two tiny islands in the Pacific, produce pearls and pineapples. The following production possibilities schedules describe their potential output in tons per year:Instructions: Enter your responses as a whole number. Suppose Alpha and Beta agree that the terms of trade will be one for one and exchange 10 pearls for 10 pineapples. a. If Alpha produced 6 pearls and 15 pineapples while Beta produced 30 pearls and 8 pineapples before they decided to trade, how many pearls would each be...
Alpha and Beta, two tiny islands in the Pacific, produce pearls and pineapples. The following production possibilities schedules describe their potential output in tons per year:Instructions: Enter your responses as a whole number.Suppose Alpha and Beta agree that the terms of trade will be one for one and exchange 10 pearls for 10 pineapples.a. If Alpha produced 6 pearls and 15 pineapples while Beta produced 30 pearls and 8 pineapples before they decided to trade, how many pearls would each be...
a,b,c 2. (20 points) Costa Rica and Honduras produce two goods, bananas and pineapples. The leaders of the two countries got together and decided each should specialize in one of the two goods and then trade. However, they (being typical politicians) couldn't figure out what good each country should produce. They hire two economists (one from each country) to determine the direction of trade. They obtain daily output per worker of each good in each country. The data are shown...
Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below Mexico Hamburgers in tons) Hamburgers in tons) Tacos (in tons) .888 Which country has an absolute advantage in producing tacos? Which country has a comparative advantage in producing tacos? Suppose the United States is currently producing 120 tons of hamburgers and 30 tons of tacos and Mexico is currently...
Question 14 (1 point) Suppose that Spain and France both produce ships and grapes, which are sold for the same price in both countries. The table below shows the combinations of the two goods that each country can produce in one year using the same amounts of capital and labor. Suppose that Spain is currently producing 30 ships and 30 tons of grapes, and France is currently producing 30 ships and 30 tons of grapes. If Spain and France each...
Question 1 -Chapter 3)-Gains from Trade: The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers (popcorn and peanuts) Alpha's Production PossibilitiesOmega's Production Possibilities Frontier Frontier 300 300 208 223 rs 150 123 100 25 215 133 25 25. 12 15 280 Assume that each country decides to use half of its resources in the production of each good. Show these points on the graphs for each country as point A a. If these...
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 Car1 Ton 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...
An American worker can produce either 5 cars or 8 tons of grain a year. A lapanese worker can produce either 4 cars or 9 tons of grain a year. To keep things simple, assume that each country has 100 million workers Complete the foflowing 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 of Grain United StatesY Japan...
Question 18 (1 point) Suppose that Spain and France both produce ships and grapes, which are sold for the same price in both countries. The table below shows the combinations of the two goods that each country can produce in one year using the same amounts of capital and labor. With specialization, Spain produces only grapes-75 tons-and France produces 75 ships. If the terms of trade are 1 ship for 1 ton of grapes, and that according to the trade...