Consider a country facing a constant opportunity cost PPF. This country makes two goods, S and...
Consider a country facing a constant opportunity cost PPF. This country makes two goods, S and T. The maximum amount of S that this country could produce is 117, and the maximum amount of T that this country could produce is 69. The relative price of T (in terms of S) is ___ S given up.
Homework Answers
Relative amount of T in terms of S = 117/69
The relative price of T (in term of S) is 69/117 = 0.59
Add Answer to:
Consider a country facing a constant opportunity cost PPF. This
country makes two goods, S and...
Suppose that country A produces two goods under conditions of constant opportunity costs. Given its resources,...
Suppose that country A produces two goods under conditions of constant opportunity costs. Given its resources, the maximum S that it can make is 1000 units, and the opportunity cost of making T is 2 units of S. What is the maximum amount of T that it can produce? Draw a production possibility frontier (PPF) for country A.
Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In...
Suppose Home has 300 units of labor. It can produce two goods,
apples and bananas. In Home a worker can produce 3 apples or 5
bananas.
a. Graph Home's PPF, with apples in the horizontal axis
. b. What is the opportunity cost of apples?
c. In the absence of trade – when Home is isolated ‐ what would
the relative price be?
d. Now suppose there is another country, Foreign, with a labor
force of 200. In Foreign a...
The table below reflects the production possibilities for two countries. Assume constant costs. Country V Country X...
The table below reflects the production possibilities for two countries. Assume constant costs. Country V Country X Sweaters 100 500 Clay Pots 30 500 1) Graph out each countries production possibilities curve (PPF) 2) Calculate the Opportunity Cost of production for each country 3) Determine which country has a comparative advantage in each good. 4) Does it make any sense for Country X to trade with Country V? 5) Fill in the blanks A clay pot internally costs country V...
Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In...
Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In Home a worker can produce 3 apples or 5 bananas. a. Graph Home's PPF, with apples in the horizontal axis. b. What is the opportunity cost of apples? c. In the absence of trade – when Home is isolated ‐ what would the relative price be? d. Now suppose there is another country, Foreign, with a labor force of 200. In Foreign a worker...
is Question: 1 pt 2 of 65 (1 complete) This T Q Q Country A's PPF...
is Question: 1 pt 2 of 65 (1 complete) This T Q Q Country A's PPF Country B's PPF Q 270 200 Com (millions of bushels) Com (millions of bushels) 200 Oil (millions of bbls) 180 Oil (millions of bbls) From the PPFs shown above it can be determined that the opportunity cost of oil is higher in country hen Given the comparative opportunity costs as revealed by the PPFs shown above, the comparative advantage for country A lies in...
Choices 1) A or B 2)Corn or Oil 3) oil or both goods or corn Country...
Choices
1) A or B
2)Corn or Oil
3) oil or both goods or corn
Country As PPF Country D's PPF Oil (millions of bbls) Oil (milions of bbls) From tha PPFs shown above it can be determined that the opportunity cost of oll is higher in country B Given the comparative opportunity costs as revealed by the PPFs shown above, the comparative advantage for country A lies ino After these two countries specialize and trade with each other, country...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only one factor of production, Labor. In England, one unit of labor can produce 2 units of wine or 1 unit of cheese. In Portugal, one unit of labor can produce 3 units of wine or 1/2 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition. 1) Fill in the...
Consider the following Ricardian model with two countries and two goods, tuna and erasers. Switzerland has...
Consider the following Ricardian model with two countries and two goods, tuna and erasers. Switzerland has 300 units of labor available; the unit labor requirement for tuna is 2 and 6 for erasers. Croatia has 200 units of labor available; the unit labor requirement for tuna is 2 and 4 for erasers. a) What is the opportunity cost of producing a tuna in Switzerland? In Croatia? b) Construct the world relative supply curve. Your Y axis should be la- beled,...
Consider two countries that produce cloth and widgets with labour as the unique production factor using...
Consider two countries that produce cloth and widgets with labour as the unique production factor using a linear technology. Given the following information: Unit Produced by One Worker/Hour Cloth Widgets Home 200 400 Foreign 120 60 i. What is the opportunity cost of cloth in terms of widgets for the Home country? For the Foreign country? (5 points) ii. In which good does the Home country have comparative advantage? Why? (5 points) ii. Assume that on the world market one...
Consider a world with two countries, Home and Foreign, both able to produce two goods: cloth and tablet computers. The p...
Consider a world with two countries, Home and Foreign, both able to produce two goods: cloth and tablet computers. The production of both goods uses capital and labor in fixed proportions, with the tablets industry using more capital per worker than the cloth industry. The units of each input needed to produce one unit output are given by: capital Labor Cloth 1 2 Tablets 2 1 Both countries have 150 units of capital available for production, but the Home country...
Suppose that country A produces two goods under conditions of constant opportunity costs. Given its resources, the maximum S that it can make is 1000 units, and the opportunity cost of making T is 2 units of S. What is the maximum amount of T that it can produce? Draw a production possibility frontier (PPF) for country A.
Suppose Home has 300 units of labor. It can produce two goods,
apples and bananas. In Home a worker can produce 3 apples or 5
bananas.
a. Graph Home's PPF, with apples in the horizontal axis
. b. What is the opportunity cost of apples?
c. In the absence of trade – when Home is isolated ‐ what would
the relative price be?
d. Now suppose there is another country, Foreign, with a labor
force of 200. In Foreign a...
is Question: 1 pt 2 of 65 (1 complete) This T Q Q Country A's PPF Country B's PPF Q 270 200 Com (millions of bushels) Com (millions of bushels) 200 Oil (millions of bbls) 180 Oil (millions of bbls) From the PPFs shown above it can be determined that the opportunity cost of oil is higher in country hen Given the comparative opportunity costs as revealed by the PPFs shown above, the comparative advantage for country A lies in...
Choices
1) A or B
2)Corn or Oil
3) oil or both goods or corn
Country As PPF Country D's PPF Oil (millions of bbls) Oil (milions of bbls) From tha PPFs shown above it can be determined that the opportunity cost of oll is higher in country B Given the comparative opportunity costs as revealed by the PPFs shown above, the comparative advantage for country A lies ino After these two countries specialize and trade with each other, country...
Consider the following Ricardian model with two countries and two goods, tuna and erasers. Switzerland has 300 units of labor available; the unit labor requirement for tuna is 2 and 6 for erasers. Croatia has 200 units of labor available; the unit labor requirement for tuna is 2 and 4 for erasers. a) What is the opportunity cost of producing a tuna in Switzerland? In Croatia? b) Construct the world relative supply curve. Your Y axis should be la- beled,...
Consider two countries that produce cloth and widgets with labour as the unique production factor using a linear technology. Given the following information: Unit Produced by One Worker/Hour Cloth Widgets Home 200 400 Foreign 120 60 i. What is the opportunity cost of cloth in terms of widgets for the Home country? For the Foreign country? (5 points) ii. In which good does the Home country have comparative advantage? Why? (5 points) ii. Assume that on the world market one...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 17 minutes ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 2 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 2 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 4 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 4 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 4 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 4 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 4 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 4 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 4 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 4 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 4 hours ago