22. The United Kingdom is made up of several smaller countries that used to be independent. The largest is England and one of the smallest, Wales, became unified with England around 700 years ago. The land in most of England is relatively fertile and can be used to grow wheat or pasture sheep. Wales, on the other hand, is mountainous and it is hard to grow wheat or find good land on which to pasture sheep, although it can be done. The land costs of producing wheat and sheep are shown below. Wheat England Wales 5 acres/ton 10 acres/ton Sheep 2 acres/sheep 2.5 acres/sheep For simplicity suppose England has 20 acres and Wales has 10 acres. Now suppose that England conquers Wales and the king wants his economist, to plot out the production possibilities for his unified kingdom. Do not expect the PPF to be a straight line, so plot more than two points. It will be helpful to consider the different patterns of specialization below and plot the points. Fill in the table Production pattern England and Wales both use all land for sheep Label Sheep Wheat A 14 England and Wales both us all land for wheat England uses its land for wheat and Wales uses its land for sheep England uses its land for sheep and Wales uses its land for wheat D At point C how many sheep are produced? 23. (continued) Plot the points found and label them A, B, C and D as designated after filling in the table. 1 of them is not on the frontier because it doesn't follow comparative advantage. Connect the dots for the other 3 to get the piecewise linear PPF. Which point is not on the frontier? 24. (continued) If the combined nation plans to produce O sheep but is considering making 1 sheep, it should notice that the opportunity cost will be tons of wheat per sheep 25. (continued) If the combined nation plans to produce 5 sheep but is considering making 6 sheep, it should notice that the opportunity cost will be tons of wheat per sheep
22. The United Kingdom is made up of several smaller countries that used to be independent. The largest is England and one of the smallest, Wales, became unified with England around 700 years ago. The land in most of England is relatively fertile and can be used to grow wheat or pasture sheep. Wales, on the other hand, is mountainous and it is hard to grow wheat or find good land on which to pasture sheep, although it can be done. The land costs of producing wheat and sheep are shown below. Wheat England Wales 5 acres/ton 10 acres/ton Sheep 2 acres/sheep 2.5 acres/sheep For simplicity suppose England has 20 acres and Wales has 10 acres. Now suppose that England conquers Wales and the king wants his economist, to plot out the production possibilities for his unified kingdom. Do not expect the PPF to be a straight line, so plot more than two points. It will be helpful to consider the different patterns of specialization below and plot the points. Fill in the table Production pattern England and Wales both use all land for sheep Label Sheep Wheat A 14 England and Wales both us all land for wheat England uses its land for wheat and Wales uses its land for sheep England uses its land for sheep and Wales uses its land for wheat D At point C how many sheep are produced? 23. (continued) Plot the points found and label them A, B, C and D as designated after filling in the table. 1 of them is not on the frontier because it doesn't follow comparative advantage. Connect the dots for the other 3 to get the piecewise linear PPF. Which point is not on the frontier? 24. (continued) If the combined nation plans to produce O sheep but is considering making 1 sheep, it should notice that the opportunity cost will be tons of wheat per sheep 25. (continued) If the combined nation plans to produce 5 sheep but is considering making 6 sheep, it should notice that the opportunity cost will be tons of wheat per sheep
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:**Transcription for Educational Website**
---
**Understanding Production Possibilities in the Unified Kingdom of England and Wales**
**Historical Context:**
The United Kingdom comprises several smaller countries, including the largest, England, and one of the smallest, Wales, which unified around 700 years ago.
**Agricultural Land Use:**
England's fertile land supports growing wheat and pasturing sheep. Wales, however, is mountainous, making it challenging to produce wheat or find suitable pasture for sheep.
**Land Costs for Production:**
| | Wheat | Sheep |
|---------|------------|----------------|
| England | 5 acres/ton| 2 acres/sheep |
| Wales | 10 acres/ton| 2.5 acres/sheep|
**Assumptions:**
- England: 20 acres available
- Wales: 10 acres available
**Scenario:**
Suppose England conquers Wales, and the king requests an economic analysis of production possibilities. It's important to plot different points as the Production Possibilities Frontier (PPF) will not be a straight line.
**Production Patterns Table:**
| Production Pattern | Label | Sheep | Wheat |
|------------------------------------------------|-------|-------|-------|
| England and Wales both use all land for sheep | A | 14 | 0 |
| England and Wales both use all land for wheat | B | | |
| England uses its land for wheat; Wales for sheep| C | | |
| England uses its land for sheep; Wales for wheat| D | | |
**Tasks:**
1. Calculate the number of sheep produced at Point C.
2. Identify which point is not on the frontier due to lack of comparative advantage after plotting points A, B, C, and D.
3. Determine the opportunity cost if:
- The plan shifts from producing 0 to 1 sheep: _____ tons of wheat per sheep.
- The plan shifts from producing 5 to 6 sheep: _____ tons of wheat per sheep.
**Graphical Interpretation:**
- Plot and label the points A, B, C, and D based on the production patterns.
- Highlight the piecewise linear Production Possibilities Frontier (PPF) to visualize trade-offs and opportunity costs.
This exercise illustrates the complexities of combining different regions with diverse agricultural capabilities and the economic principles involved in optimizing production outputs.
---
Expert Solution
Introduction
Comparative advantage in when a nation is able to produce a good or a service at a lower opportunity cost compared to another nations.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education