Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours.
Question: What is the opportunity cost of wheat (in terms of units of cloth) in Brazil? In Chile?
Homework Answers
Opportunity cost of wheat in Brazil is 10/6= 1.67 yard of cloth.
Opportunity cost of wheat in Chile is 9/6= 1.5 yard of cloth.
Add Answer to:
Situation: Brazil and Chile can produce cloth and wheat. In
Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours. Question: Which country has absolute advantage in wheat? In cloth?
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a...
Situation: Brazil and Chile can produce cloth and wheat. In Chile, the labor requirement for a yard of cloth is 6 hours while the requirement for a bushel of wheat is 9 hours. In Brazil, the requirement for a yard of cloth is 6 hours while that for a bushel of wheat is 10 hours. Question: Is it possible for the wheat-exporting country to charge 12 bushels/yard for its wheat? Explain briefly.
Trading Countries: Assume that Brazil and Chile can switch between producing beef and producing wheat at...
Trading Countries: Assume that Brazil and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce in one hour. Output produced in one hour bushels of wheat pounds of beef Brazil 12 10 Chile 20 Brazil should specialize in the production of nenher good and Chile should specialize in the production of both goods. both goods and Chile should specialize...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor intensive than automobile production. Chile has 200 units of capital and S0 units of labor and United States has 1500 units of capital and 275 units of labor. has more capital and is relatively capital abundant. will export wheat and d. In Chile, the production of e In United States, the price of automobiles Chilean workers should has more labor. is...
Figure 3-1 Paul CHE Wheat Wheat 10 Com Com Refer to Figure 3-1. Suppose Cliff must...
Figure 3-1 Paul CHE Wheat Wheat 10 Com Com Refer to Figure 3-1. Suppose Cliff must work 5 hours to produce each bushel of corn. Then Cliff O a. must work 3 1/3 hours to produce each bushel of wheat, and his opportunity cost of a bushel of corn is 2/3 bushel of wheat. O b. must work 3 1/3 hours to produce each bushel of wheat, and his opportunity cost of a bushel of corn is 1.5 bushels of...
In 10 hours, the U.S. can produce 35 bushels of corn. In 7 hours, the U.S....
In 10 hours, the U.S. can produce 35 bushels of corn. In 7 hours, the U.S. can produce 30 bushels of wheat. What is the opportunity cost of producing 1 bushel of corn (in terms of bushels of wheat)? Enter your answer as a fraction OR a number with two decimals. Hint: Calculate how much of each good can be produced in 1 hour, then solve for the amount of foregone wheat when choosing to produce a bushel of corn.
Problems: 50 points 1. (10 points) Labor Inputs 100 120 Wheat Clothing Country United States Brazil...
Problems: 50 points 1. (10 points) Labor Inputs 100 120 Wheat Clothing Country United States Brazil Answer the following: a. Who has the absolute advantage in which good? b. What is the opportunity cost of wheat in the US? in Brazil? c. What is the opportunity cost of clothing in the US? in Brazil? d. Who has the comparative advantage in which good? e. What are the limits of the post-trade relative price of wheat? Suppose the actual post-trade relative...
QUESTION 6 Alternate outputs from one day's labor input: India: 1600 bushels of wheat or 400...
QUESTION 6 Alternate outputs from one day's labor input: India: 1600 bushels of wheat or 400 yards of textiles. Mexico: 250 bushels of wheat or 1250 yards of textiles. The opportunity cost of one bushel of wheat in India is: a. 1 yards of textiles b. 400 yards of textiles C. 4 yards of textiles d. 0.25 yard of textiles
U.S. U.K. Wheat (bushels/ labor-hour) 4 2 Cloth (yards/ labor- hour) 2 1 a. express the...
U.S. U.K. Wheat (bushels/ labor-hour) 4 2 Cloth (yards/ labor- hour) 2 1 a. express the cost of producing wheat and cloth in the U.S. and in the U.K. in terms of labor content b. find Pc/Pw for both the U.S. and the U.K. in the absence of trade c. express the limits for mutually advantageous trade in terms of Pc/Pw. What does this result indicate?
Question Help Suppose Italy and Spain produce only cloth and wine. Assume that each country uses only labor to prod...
Question Help Suppose Italy and Spain produce only cloth and wine. Assume that each country uses only labor to produce each good, and that the cloth and wine made in Italy and Spain are exactly alike. The table below shows how much each country can produce of each good with one hour of labor. Output per Hour of Labor Cloth Wine Italy Spain According to the table, the opportunity cost to Italy of producing one more unit of cloth is...
Trading Countries: Assume that Brazil and Chile can switch between producing beef and producing wheat at a constant rate. The following table shows the pounds of beef or the bushels of wheat each country can produce in one hour. Output produced in one hour bushels of wheat pounds of beef Brazil 12 10 Chile 20 Brazil should specialize in the production of nenher good and Chile should specialize in the production of both goods. both goods and Chile should specialize...
Chile and the United States use capital and labor to produce wheat and automobiles. Wheat production is more labor intensive than automobile production. Chile has 200 units of capital and S0 units of labor and United States has 1500 units of capital and 275 units of labor. has more capital and is relatively capital abundant. will export wheat and d. In Chile, the production of e In United States, the price of automobiles Chilean workers should has more labor. is...
Figure 3-1 Paul CHE Wheat Wheat 10 Com Com Refer to Figure 3-1. Suppose Cliff must work 5 hours to produce each bushel of corn. Then Cliff O a. must work 3 1/3 hours to produce each bushel of wheat, and his opportunity cost of a bushel of corn is 2/3 bushel of wheat. O b. must work 3 1/3 hours to produce each bushel of wheat, and his opportunity cost of a bushel of corn is 1.5 bushels of...
In 10 hours, the U.S. can produce 35 bushels of corn. In 7 hours, the U.S. can produce 30 bushels of wheat. What is the opportunity cost of producing 1 bushel of corn (in terms of bushels of wheat)? Enter your answer as a fraction OR a number with two decimals. Hint: Calculate how much of each good can be produced in 1 hour, then solve for the amount of foregone wheat when choosing to produce a bushel of corn.
Problems: 50 points 1. (10 points) Labor Inputs 100 120 Wheat Clothing Country United States Brazil Answer the following: a. Who has the absolute advantage in which good? b. What is the opportunity cost of wheat in the US? in Brazil? c. What is the opportunity cost of clothing in the US? in Brazil? d. Who has the comparative advantage in which good? e. What are the limits of the post-trade relative price of wheat? Suppose the actual post-trade relative...
QUESTION 6 Alternate outputs from one day's labor input: India: 1600 bushels of wheat or 400 yards of textiles. Mexico: 250 bushels of wheat or 1250 yards of textiles. The opportunity cost of one bushel of wheat in India is: a. 1 yards of textiles b. 400 yards of textiles C. 4 yards of textiles d. 0.25 yard of textiles
Question Help Suppose Italy and Spain produce only cloth and wine. Assume that each country uses only labor to produce each good, and that the cloth and wine made in Italy and Spain are exactly alike. The table below shows how much each country can produce of each good with one hour of labor. Output per Hour of Labor Cloth Wine Italy Spain According to the table, the opportunity cost to Italy of producing one more unit of cloth is...
Most questions answered within 3 hours.
-
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 35 minutes ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 36 minutes ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 1 hour ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 1 hour ago -
What's the streaming business's problem on the
horizon?
asked 2 hours ago -
I need help with writing the conclusion for this online lab
report
Abstract
By testing the...
asked 2 hours ago -
For the reaction 1N2+3H2-----> 2NH3, would the reaction rate
trend be: delta[NH3]/ delta t = -2...
asked 2 hours ago -
Within your current/past organization, identify a problem/issue
and format a design to address same. You may...
asked 2 hours ago -
A sock stuck to the side of a clothes-dryer barrel has a
centripetal acceleration of 24...
asked 3 hours ago -
A perfect gas undergoes an isentropic process such that its
volume doubles. If the ratio of...
asked 4 hours ago -
list the elements in groups 3A to 6A in the same order as in the
periodic...
asked 4 hours ago -
Estimating effect size. Peng and Chen (2014)
evaluated effect size estimates for various tests. In their...
asked 4 hours ago