Question

please answer all the following

Lesson 1.4-Specialization and Trade Tony can produce any of the following combinations of goods X and Y (a) 100 X and O Y, (b) 50 X and 25 Y, and (c) OX and 50 Y. Darlene can produce any of the following combinations of goods X and Y (a) 50 X and O Y, (b) 25 X and 40 Y, and (c) O X and 80 Y. Who has the comparative advantage in the production of Good X7 Explain. Explain Who has a comparative advantage in the production of Good Y? Annette and Leon can produce both books and paper towels. 2 Leon Annette Paper Towels 90 Paper Books Books Towels 40 45 20 15 40 0 30 80 Draw Annette's PPF Graph. Draw Leon's PPF Graph. Fill in each of the following: Annette: Her opportunity cost of producing 1 more book= producing 1 more paper towel paper towels. Her opportunity cost of books paper towels. His opportunity cost of producing Leon: His opportunity cost of producing 1 more book books 1 more paper towel Who has the comparative advantage in producing Books? Who has the comparative advantage in producing Paper Towels? If Annette and Leon agree to produce the good in which they have a comparative advantage and they agree to trade 30 books for 35 rolls of paper towels, fill out the following table. How much will If they agree to Without With each person gain trade 30 books for 35 rolls of paper specialization & Trade, Each person Specialization and Trade, due to towels, how many specialization and Each person will produce will each person trade? will produce consume? Consumption of 40 Books Annette Consumption of 20 Paper Towels Consumption of 15 Books Leon Consumption of Paper Towels 45 7. Draw a PPF that represents increasing opportunity costs. This means that as we produce more ofa good (books), the opportunity cost (magazines) of producing that good increases Magazines 8. Using the graph in No. 6, label the following points: a Unemployed Resources b. Fully Employed Resources Productive inefficiency c. d. Productive efficiency Unattainable e. 9. Match each of the following with the correct graph: A technological breakthrough in the production of good X only. A discovery of additional resources to produce good Y only A catastrophe that eliminates some resources needed to produce both good X and good Y, such a. b. c. as a consequence of war. An advance in technology or discovery of new resources to produce both good X and good Y. d. X 0 X 0 X 0 (2) (3) (1) 0og Quantity Demanded of Apples Using the information plotted above, what type of relationship exists between the two variables? a. Determine the slope between b. Determine the slope between points C and D. points E and F 7. Plot the following data Price should be on the Y axis and quantity supplied on the X axis. Quantity Supplied of Oranges Price of Oranges 350 A 0.30 400 0.55 0.75 500 C 700 1.00 1.05 800 1.15 1000 SOO duartay Supplied of Oranges Using the information plotted above, what type of relationship exists between the two variables? a Determine the slope between Determine the slope between points B and C. b points D and E Notes: Slope Calculations Slope=4a-4 Lessen 1 2-intro to Working with DiaTam ROStHICY Two variables are uouCrd sioOne nee to right 2 Twovariables are TOO κυγααναί Twe variables are incpcOeys fone varable rises or fells and the other variable remains constant The SOE of a line variable on the horizontal axis, The N One ofa straight line is the same between any two points on the ine. The formule for tloce is ted it one varable rises and the ofher rises and are represented by ane Cienedone varible rises and the other fals and are represented by a ine eft to riht the ratio of the change in the variable on the vertical asis to the change in thet 24 5What type of relationship wovld you expect between the following T Postive or Negative Drew each cunve to show relationshipe Compicmont POSittve Scenario Type of Relationship Sloge Sales of het does and het dog bues The price of winter coats and sales of winter coats The price of personal computers and the production of personal computers Sales of toothbrushes and sales of cat food The sumber of chldren in a family and the rumber of toys in a famile Plot the followine data, Price shouid be on the Y avis and quantity demanded on the X axis

Answer 1

I will answer the first pic

1.Tony has the comparative advantage in the production of good X as he has a lower opportunity cost for production of X(he can't produce 1 Y for every 2 X he produces,so his opportunity cost is 1/2Y) meanwhile Darlene has an opportunity cost of 80/50=1.6Y for every X she produces. Similarly Darlene has a comparative advantage in the production of good Y because of the lower opportunity cost of producing Y (50/80 X) than Tony(2X)

2. Draw a graph with Books on X axis and Paper towels on Y axis and mark (0,40), (40,20) ,(80,0) for Anette and draw a concave downwards curve to find the PPF curve and similarly for Leon

Anette opportunity cost of producing 1 more book is 0.5 paper towels and for producing 1 more paper towel is 2 books

for Leon opportunity cost of producing 1 more book is 3 paper towels and for producing 1 more paper towel is 1/3 book

Anette has comparative advantage in producing books and Leon in paper towels