Econ2 mission 3.1
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School
University of California, Santa Cruz *
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Course
2
Subject
Medicine
Date
Apr 3, 2024
Type
Pages
7
Uploaded by CorporalGerbil492
Question 1 1 pts The European Union can use workers to produce personal protective equipment (P) and medicine (M). The EU can produce 1 ton of P with 5 workers, 1 ton of M with 9 workers. It has 120,000 workers available to allocate between producing these 2 goods. After speaking to several national medical associations you calculate that Europe needs 1000 tons of personal protective equipment to keep hospitals staffed. How many tons of medicine will Europe be able to produce if it produces this required quantity of personal protective equipment? Enter your answer as just a number---we'll assume it is in units of tons of medicine. Round your answer to the nearest 0.01.
Question 2 1 pts Given the costs and resources in the previous question, solve for the opportunity cost of medicine. Enter your answer as just a number. Round your answer to the nearest 0.01.
Question 3 1 pts The units of your previous answer (the opportunity cost of medicine) is in units of... O dollars O workers O tons of medicine (O tons of personal protective equipment
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Question 4 1 pts After consulting with epidemiologists, you calculate that the European Union will need 50,000 tons of medicine to let Europe minimize the human and economic cost.. Gerry Le Con has called for a new technology that would reduce the cost of producing medicine by enough to meet this target. What would the cost of medicine have to be to let the Europe Union produce 50,000 tons of medicine while also producing 1000 tons of personal protective equipment? Enter your answer as just a number. Round your answer to the nearest 0.01.
Question 5 1 pts The units of your previous answer (the cost of medicine) is in units of... O dollars O workers O tons of medicine (O tons of personal protective equipment
Question 6 1 pts After speaking to several pharmaceutical companies you conclude that any such new technology is impossible. But the European Union's trade representative has just informed you that she has managed to negotiate a trade deal with the United States. Under the arrangement, Europe will specialize in (and export) personal protective equipment while importing medicine from the United States. She has negotiated a trade price of 1/5 ton of personal protective equipment for 1 ton of medicine. Assuming the European Union retains 1000 tons of personal protective equipment and exports the rest to the United States, how much medicine would the European Union have under the trade agreement? Enter your answer as just a number. Round your answer to the nearest 0.01.
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Question 7 1 pts Write down the PPF of the European Union under trade. You must write the equation in terms of P and M, in the form you would use to graph the PPF with P on the vertical axis. Round all numbers to the nearest 2 digits. Edit View Insert Format Tools Table 12pt v Paragraph v B 7 U Av £v T2v P @ owords </>