2 plates of pasta 9.) Suppose that Bob still has 10 hours and can produce 10 hamburgers in 1 hour in one hour. Jimmy also has 10 hours. He can produce 4 hamburgers in 1 hour or 1 plates of pasta in one hour. Which of the following is TRUE? a.) Jimmy has absolute advantage in production of pasta b.) Jimmy has absolute advantage in production of hamburgers c.) Jimmy has comparative advantage in production of pasta d.) Jimmy has comparative advantage in production of hamburgers 10.) If Bob and Jimmy from question 9 were to trade and mutually benefit, then: a.) Bob should specialize in making pasta b.) Jimmy should specialize in making pasta c.) The terms of trade would have to be ¼ plate of pasta per hamburger d.) It is impossible for Bob and Jimmy to mutually benefit from trade

2 plates of pasta 9.) Suppose that Bob still has 10 hours and can produce 10 hamburgers in 1 hour in one hour. Jimmy also has 10 hours. He can produce 4 hamburgers in 1 hour or 1 plates of pasta in one hour. Which of the following is TRUE? a.) Jimmy has absolute advantage in production of pasta b.) Jimmy has absolute advantage in production of hamburgers c.) Jimmy has comparative advantage in production of pasta d.) Jimmy has comparative advantage in production of hamburgers 10.) If Bob and Jimmy from question 9 were to trade and mutually benefit, then: a.) Bob should specialize in making pasta b.) Jimmy should specialize in making pasta c.) The terms of trade would have to be ¼ plate of pasta per hamburger d.) It is impossible for Bob and Jimmy to mutually benefit from trade

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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i am having trouble with this question macroeconmics chapter 5 question 1
500 400 300 200 100 Pumpkin 100 200 300 400 500 Wonderland produces and consumes two goods, pumpkins and sweet potatoes, by using two inputs, labor and capital. The production possibilities frontier of Wonderland is shown above. Which of the following combinations of pumpkins and sweet potatoes is NOT a combination which is "definitely better than the autarky consumption combination (A)"? O 300 units of pumpkins and 200 units of sweet potatoes 100 units of pumpkins and 500 units of sweet potatoes O 300 units of pumpkins and 300 units of sweet potatoes O200 units of pumpkins and 300 units of sweet potatoes
Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks. Which of the following is not possible? a. Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats. b. Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks. c. Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks. d. Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.
Figure 1 shows the PPF for an economy that produces Food and Clothes. Which of the following production bundles is feasible and inefficient? A) 50 Food and 360 Clothes B) 500 Food and 48 Clothes C) 320 Food and 144 Clothes D) 50 Food and 264 Clothes
Figure 2 shows the PPF for an economy that produces Butter and Guns. Suppose the economy is currently producing 10,000 units of butter and 5,500 guns. What is the economy's opportunity cost of producing 10,000 additional units of butter? A) 100 Guns B) 300 Guns C) 700 Guns D) 900 Guns
Good X Country 1 Country 2 150 Good X 120 95 80 90 72 ICr 62 60 50 IC 30 35 18 33 45 55 60 78 Good Y 30 90 120 150 Good Y Use the figure above to answer the following question: How much is Country 2 consuming in autarky? O 72 of Good X and 83 of Good Y and Country 1 is consuming 60 of Good X and 53 of Good Y. O 62 of Good Y and 60 of Good X and Country 1 is consuming 30 of Good X and 55 of Good Y. 62 of Good X and 60 of Good Y and Country 1 is consuming 55 of Good X and 30 of Good Y. 62 of Good X and 60 of Good Y and Country 1 is consuming 30 of Good X and 55 of Good Y.
7.) Who discovered the law of comparative advantage? a.) David Ricardo b.) Robert Torrents c.) David Autor d.) Robert Lucas 8.) Suppose that Bob can produce hamburgers and pasta and has 10 hours of time. Bob can make 10 hamburgers in 1 hour and 2 plates of pasta in one hour. What is Bob's opportunity cost of producing hamburgers? a.) 1/5 b.) 2/5 с.) 3/5 d.) 4/5
08. What are the relative prices (opportunity costs) of wine and cloth? a) wine costs 1/2 yard of cloth per bottle in England b) cloth costs 1/2 bottle of wine/yard in England c) cloth costs 4 man-hours/yard in Portugal d) cloth costs 2 bottles of wine/yard in Portugal e) wine costs 3 bottles of wine/yard in Portugal
14. Efficiency in the production possibilities model Suppose the fictional country of Haleakala produces only two goods: sorghum and axles. The following graph plots Haleakala's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. AXLES (Millions) 100 80 20 0 0 PPF D 20 +w E Xc 40 + B F XA 60 SORGHUM (Millions of bushels) 80 100
Use the graph to answer the following question: Plant R and Plant S both produce radios and calculators. Which of the following statements is most true? A) Plant R has the comparative advantage to produce radios but not calculators. B) Plant R has the comparative advantage to produce both goods. C) Plant S has the comparative advantage to produce radios but not calculators. D) Plant S has the absolute advantage to produce both calculators and radios.
Table 3-23 Assume that the farmer and the rancher can switch between producing pork and producing tomatoes at a constant rate. Labor Hours Needed to Make 1 Pound of Pounds Produced in 24 Hours Pork Tomatoes Pork Tomatoes Farmer 16 3 14 18 Rancher 14 16 16 Refer to Table 3-23. Assume that the farmer and the rancher each has 24 labor hours available. If each person spends all his time producing the good in which he has a comparative advantage, then total production is a. 4 pounds of pork and 6 pounds of tomatoes. b. 6 pounds of pork and 8 pounds of tomatoes. c. 4 pounds of pork and 8 pounds of tomatoes. d. 6 pounds of pork and 6 pounds of tomatoes.
5. China is able to produce turnips and potatoes in combinations represented by the following table. (Each number represents 1,000s of bushes.) Potatoes Production Turnips point a. B C D E b. C. points. 100 and 0 90 and 10 and 20 and 30 and 40 70 40 0 Plot the data on a production possibilities graph, labeling Can China produce a combination of 30 turnips and 24 potatoes? Draw this production point on the graph (label it F) and verbally explain. Demonstrate that China experiences increasing opportunity costs by calculating the opportunity cost of producing another potato at each production point. Explain.