Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. North Cantina Production Possibilities A B D F Capital Goods 5 4. 2 1 Consumer Goods 10 18 24 28 30 South Cantina Production Possibilities A B D Capital Goods 5. 4 3 1 Consumer Goods 8 15 21 25 27 Refer to the tables. If North Cantina is producing at production alternative D, the opportunity cost of the twenty-fifth unit of consumer goods will be

Answer the question on the basis of the following production possibilities tables for two countries, North Cantina and South Cantina. North Cantina Production Possibilities A B D F Capital Goods 5 4. 2 1 Consumer Goods 10 18 24 28 30 South Cantina Production Possibilities A B D Capital Goods 5. 4 3 1 Consumer Goods 8 15 21 25 27 Refer to the tables. If North Cantina is producing at production alternative D, the opportunity cost of the twenty-fifth unit of consumer goods will be

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter33: International Trade

Section: Chapter Questions

Problem 1QP

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Elif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1hour A) What is the opportunity cost of producing cakes for Elif? What is the opportunitycost of producing cakes for Ahmet?B) Who has a comparative advantage in producing pies and who has a comparativeadvantage in producing cakes?C) On the PPF lines, show what Elif produces and what Ahmet produces when theyspecialize.D) Suppose that they set the exchange price as 1 Pie = 3 Cakes. If they specialize andtrade, show an exchange situation that is beneficial for both (compared to thesituation you found at part (b))?F) What is the minimum and maximum exchange price they could have determined foran exchange that will be beneficial for both of them?
The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each country can produce apples and plums. New Zealand's Production Possibilities Table (Millions of Bushels) Production Alternatives. Product A B с D Apples 0 20 40 60 Plums 15 10 5 0 Spain's Production Possibilities Table (Millions of Bushels) Production Alternatives Product R S T U Apples 0 20 40 60 Plums 60 40 20 0 a. Plot the production possibilities data for each of the two countries separately. Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. Instructions: (1) Use the tools provided, 'PPC NZ' and 'PPC SP, (plot 4 points each) to draw the PPC curves. (2) Use the tool provided, 'TOT, in each diagram (plot 4 points each) to draw the trading possibilities lines for each nation. To earn full credit, you must correctly plot all points for each line. New Zealand Spain 80 Tools 140 / 120 TOT 60 100 40 20 10 15 20 25 30 Plums (millions of…
The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each country can produce apples and plums. New Zealand's Production Possibilities Table Spain's Production Possibilities Table (Millions of Bushels) (Millions of Bushels) Production Alternatives Production Alternatives Product A в D Product R T U Apples 20 40 I 60 Apples 40 20 60 Plums 15 10 5 Plums 60 40 20 a. Plot the production possibilities data for each of the two countries separately. Show the trading possibilities lines for each nation if the actual terms of trade are 1 plum for 2 apples. Instructions: (1) Use the tools provided, 'PPC NZ' and 'PPC SP, (plot 4 points each) to draw the PPC curves. (2) Use the tool provided, 'ToT,' in each diagram (plot 4 points each) to draw the trading possibilities lines for each nation. To earn full credit, you must correctly plot all points for each line. New Zealand Spain 80 Tools 140 Tools 120 PPC NZ PPC SP ToT Тот 60 100 80 40 60 40 20 20 50 (50, 0)…
Draw another diagram putting on it the original production possibility frontier you drew for (a), labelling it AA. (i) Draw a new production possibility frontier on the diagram, labelling it PP, which shows the position after a devastating war has hit the economy. (ii) Draw another PPF labelling it QQ which shows an increase in productivity in the econory such that output from the same amount of resources increases by 50 per cent in the public sector but twice that amount in the private sector. already finished part A need help with part B thanks!
Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two uni food. Their production possibilities curves are shown. textiles 1200 Cauntry A Slopedf 2 line 600 400 Country B Slopeof line To200 400 600 Under the theory of comparative advantage: O a. The citizens of country A should make textiles and trade with the citizens of country B for food. Ob. There are no gains from trade in this example. O. The citizens of country A should make food and trade with the citizens of country B for textiles. O d. A is twice as good as B at making food and B is twice as good as A at making textiles.
The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce almonds and basil, each initially (i.e., before specialization and trade) producing 18 million pounds of almonds and 9 million pounds of basil, as indicated by the grey stars marked with the letter A. BASIL (Millions of pounds) 48 42 36 30 24 18 PPF ୯ 12 6 Cả 0 0 I I 6 Shenandoah 18,9 12 18 24 30 36 ALMONDS (Millions of pounds) 42 48 BASIL (Millions of pounds) 48 42 36 30 24 18 12 6 0 0 PPF 6 Denali 12 18 24 30 36 42 48 ALMONDS (Millions of pounds) ? Shenandoah has a comparative advantage in the production of , while Denali has a comparative advantage in the production of . Suppose that Shenandoah and Denali specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of basil. million pounds of almonds and
Please help me explain how the economic concept of scarcity links production possibilities curves and comparative advantage. Explain how scarcity is the common foundation for PPCs and comparative adv
The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each country can produce apples and plums. Plot the production possibilities data for each of the two countries separately. Referring to your graphs, answer the following:
Q.2. This table below shows the production possibilities for the United States. State the opportunity cost of moving from point a) B to C: b) D to E c) E to F d) F to D Production Point A B mon с Ꭰ E F Wheat Production (Bushels per year) 0 10 million 20 million 30 million 40 million 50 million Car Production (Cars per year) 500,000 475,000 425,000 350,000 200,000 0
Based on the table below answer the following: Points A B C Combinations of sweaters and phones sweaters 16 12 8 4 phones 0 1 2 3 D 4 0 E 1. Draw a production possibilities frontiers (PPF) using the data from the table below (put sweaters in the vertical axis and phones in the horizontal axis) and showing all the points in the PPF. 2. What is the opportunity cost of an extra phone when you are on segment AB? What about when you are at segment CD? (i.e., how many sweaters you have to give up in order to get an extra phone? Show your work!) 3. What is your PPF's shape? Explain why your PPF has that shape based on your answer on (2). 4. Illustrate the effect of a new technology in the production of phones only in this economy.
Germany Production Possibilities (Production Alternatives) Product A B C D E F Autos 0 4 8 12 16 20 Chemicals 40 32 24 16 8 0 U.S. Production Possibilities (Production Alternatives) Product A B C D E F Autos 0 3 6 9 12 15 Chemicals 60 48 36 24 12 0 The data in the accompanying production possibilities tables (in millions of units) suggest that production in Multiple Choice Germany is subject to increasing opportunity costs and in the United States to constant opportunity costs. the United States is subject to increasing opportunity costs and in Germany to constant opportunity costs. both Germany and the United States is subject to constant opportunity costs. both Germany and the United States is subject to increasing opportunity costs.
There are 10 workers in Thailand and each can produce either 2 computers or 30 tons of rice. There are 20 workers in the United States and each can produce either 5 computers or 40 tons of rice. Draw the production possibilities frontier for each country. In each case, identify the intercepts and the slopes of the production possibilities frontier.