using the i formation about production possibility frontier in two countries home and abroad in the table below and answer the following questions.
unit labour requirements
apples. home =3. abroad
=5
for bannanas home=2. and abroad =1
total laboir hours available
apple -1200. aborad -800
graph home and abroad ppf on spearate graphs .make
sure to mark axes and intercepts values
what are rhe opportunity cost of producing the good that is
measured on x axis
what will country specialise in producing if they traded with each
other
if world price ration is pb/pa=0.5 what is the ratio of wages
whome/wabroad
what is the real wage in each country in termsof each good
using the i formation about production possibility frontier in two countries home and abroad in the...
An economy has a production possibility frontier given by X2 + 4Y2 = 100. (i) Graph this ppf. (ii) Calculate the opportunity cost of an extra unit of good X when a. X = 2 b. X = 8. [Hint: you need ΔY/ΔX; either use calculus; or calculate Y when X=2 and X=3 to get an approximation. Excel might be helpful for this.] (iii) If consumers want to consume equal amounts of X and Y, how much of each should...
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...
Home Fareign Cheese Wine Labor Force 100 200 Several questions require drawing graphs. In these cases you should graph carefully, either using graph paper à computer, or if you graph by hand, a ruler to show exact amaunts an the vertical and horizantal axes à. Whith country has an absolute advantage in producing cheese? Which country has an absolute advantage in producing wine? b. Whith country has a comparative advantage in producing cheese? Which country has a comparative advantage 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...
I need help with this exercise. Two countries, Canada and Indonesia, produce two goods, Computers (C) and rice (R) with labour (L) as the only input. The quantities of input required to produce a unit of each output are as follows: Computers Rice Indonesia 8 1 Canada 10 2 L in Canada is = 30, in Indonesia is =40. i) Sketch the PPF in each country (with QC on the horizontal axis). Indicate the intercepts and slope of the PFF...
Please Answer Question number two
A) (10 points) Draw the aggregate production possibility curve of fruit production in Washington State. Label carefully. Assume it is linear for each company. B) (5 points) Using one company as an example, explain what the slope of a producer's PPF means. C) (10 points) Suppose apples are $1 per pound and grapes are $5 per pound. Show how many grapes and apples each country will produce (a) graphically and (b) write your answer numerically....
Consider a Ricardian model. There are two countries called Australia and New Zealand and two goods called beer and cheese. In Australia the unit labour requirement for a beer is 10 hours and for a cheese is 10 hours. In New Zealand the unit labour requirement for a beer is 4 hour and for a cheese is 1 hour. Australia has an endowment of 2000 hours of labour. New Zealand has an endowment of 400 hours of labour. 1 Draw...
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...
Scenario Bananas and Corn: The graphs below show separately, England's and Honduras' production possibility frontier when producing only two goods, bananas and corn, given the same available resources. England Honduras Com Com Bananas Bananas 3. The opportunity cost of a unit of bananas is al unit of corn for England and 2 units of corn for Honduras bl 4 units of corn for England and 1/2 unit of corn for Honduras al 4 units of corn in England and 12...
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Budgetary Policy and Economic Growth Errol D'Souza The share of capital expenditures in government expenditures has been slipping and the tax reforms have not yet improved the income...