Barrels 35 30 25 20 15 10 5 0 2 O wi B 4 6 8 10 12 14 16 Bathtubs Refer to Figure 2-8. What would happen if this economy moved from point F to point C? It still would not be producing efficiently. There would be no gain in either bathtubs or barrels. It would be producing more barrels and more bathtubs than at point C. It is not possible for this economy to move from point F to point C without additional resources.
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- 6. Refer to the following table. Assume there are two workers in Mexico and three workers in the United States. United States Mexico Bicycle wheels produced per hour Pounds of rice produced per hour 7 5 10 a. Determine the pretrade relative price of bicycle wheels in Mexico and the United States. b. Given your answer in part (a), which country has a comparative advantage in the production of rice? c. What is the lowest international relative price of bicycle wheels Mexico is willing to accept in order to engage in trade with the United States? Explain why12. Given this set of production possibilities and consumption (trade) possibilities frontiers, what happens to the prices of wine and cloth in each country as a result of trade? a) The price of wine in Portugal increases from 1/3 yard/bottle to 1/2 yard/bottle. b) The price of cloth in Portugal decreases from 3 bottles/yard to 2 bottles/yard. c) The price of wine in England decreases from 1 yard/bottle to 1/2 yard/bottle. d) The price of cloth in England increases from 1 bottle/yard to 2 bottles/yard. e) All of the aboveAdjust the production possibilities frontier (PPF) to show the economy's new production possibilities after the deterioration of infrastructure. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. QUANTITY OF CARS (Millions) 24 16 0 0 O 5 OO PPF 10 QUANTITY OF COMPUTERS (Millions) 15 Suppose society faces a broad tradeoff between allocating resources to the production of investment goods (computers) and consumption goods (cars) before the deterioration of infrastructure described above. PPF Which of the following events would be most likely to lead to the deterioration of infrastructure you just illustrated? Increasing production of investment goods and decreasing production of consumption goods Decreasing production of investment and consumption goods Increasing…
- this question is for macronomics but on bartleby does not show any opiton for macronomics it just show economics Table 20.4.4 Quantities 2013 2014 Bananas 1,000 bunches 1,100 bunches Coconuts 500 bunches 525 bunches Prices 2013 2014 Bananas $2 a bunch $3 a bunch Coconuts $10 a bunch $8 a bunch 5) Refer to Table 20.4.4 above. The table provides data on the economy of Tropical Republic that produces only bananas and coconuts. a) Calculate the Nominal GDP in 2013. b) Calculate the Real GDP in 2014. c) Calculate the GDP Deflator in 2014.Suppose our exports to Canada fall because of their recession. On impact, our will shift downward. Eventually, our will shift downward and the new equilibrium Tt will be O a. ADT; ASīt; higher O b. AST; ADt; higher AST; ADTt; lower O d. ADT; AST; lower50 45 ↑ases 40 35 30 25 20 15 10 5. 30 20 30 40 50 60 70 80 Refer to Figure 2-4. It is possible for this economy to produce 40 toothbrushes and 20 toasters. O 50 toothbrushes and 30 toasters. O 70 toothbrushes and 40 toasters. O All of the above.
- Table 2 Production possibilities for one week for Simran and Preet Simran Preet Good X Good Y Good X Good Y 40 160 30 10 120 20 20 20 80 40 10 30 40 60 0. 40 80 Refer to Table 2. What is true about this economy? Check all options that you think are correct. More than one option may be correct. O A. Both Simran and Preet will gain from trade if Simran sells 20 units of Y and Preet sells 80 units of X. O B. Both Simran and Preet will gain from trade if Simran sells 20 units of X and Preet sells 80 units of Y. OC. Preet has an absolute advantage in production of both goods, therefore, Preet cannot gain from trade with Simran. O D. This economy does not have a trade combination that would benefit both Simran and Preet. O E Both Simran and Preet will gain from trade if Simran sells 30 units of Y and Preet sells 60 units of X. O F. Both Simran and Preet will gain from trade if they trade a half of the quantity of the good each of them makes when they specialize according to their comparative…Suppose that United States produces 10,000,000 barrels of oil and 1,000 bushels of wheat each week. Suppose that China produces 14329 barrels 14329 barrels of oil and 14329 bushels 14329 bushels of wheat each week. In autarky, what is the largest amount of wheat United States can consume every week? amount of wheat per week:___________ bushels What does the term autarky refer to? a. a major argument against globalization b. a situation where one country does not engage in trade with other c. countries d. the process of negotiating terms of trade between two countries e. government policies meant to reduce international tradeFigure: Guns and Butter Guns (per period) 18 16 12 8 4 0 A Reference: Ref 2-2 4 8 B Production possibility frontier E F 12 16 18 20 H Butter (per period) (Figure: Guns and Butter) Look at the figure Guns and Butter. Suppose the economy produced 8 guns and 12 pounds of butter per period. O This is a possible choice but is inefficient. O This combination invalidates the notion of increasing opportunity cost. O The economy is still efficient but does not buy as much as it could. Something must be done to reduce the amount of employment.
- 5. Use the information on the following transactions for a country named Neverland: i. Local coffee shops sold $10,000 worth of coffee to local consumers. To produce the coffee, they purchased $2,000 worth of coffee beans from local coffee growers. The same growers also sold coffee for $5,000 to a foreign company. ii. The local textile company bought $1,000 worth of wool from an Australian com- pany and produced $10,000 worth of clothes sold to domestic consumers. The local textile company also bought 10 Vespas from Piaggio* (foreign company) at the cost of $1,000 each to use for deliveries. What is the value of Gross Domestic Product (GDP) in Neverland? (a) 27,000 (b) 19,000 (c) 30,000 (d) 24,000 (Right answer)Mike and Sandy are two woodworkers who both make tables and chairs. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Who has a comparative advantage in which product? Select one: O a. both Mike and Sandy in tables O b. Mike in tables, Sandy in chairs O c. both Mike and Sandy in chairs d. Mike in chairs, Sandy in tables Clear my choiceTime le If in a previously fully employed economy, some workers were to become unemployed, how would you show this change on the production possibility frontier? Select one: O a. The PPF would shift outward. O b. The PPF would shift inward. O c. The PPF would pivot inwards O d. The PPF would pivot outwards O e. The point representing output on the PPF would shift inside the line. Next