COFFEE (Milions of pounds) 48 42 36 30 24 18 PPF 12 6 0 0 ——— 1 Maldonla 6 12 18 24 30 36 POTATOES (Millions of pounds) 42 48 (?) COFFEE (Millions of pounds) 48 42 24 18 12 6 0 0 PPF 6 Lamponia 1 42 48 12 24 30 36 POTATOES (Millions of pounds) 18 ? Consider the above two graphs which represent production possibilities. What are the comparative advantages? Maldonia has a comparative advantage in potatoes and Lamponia has a comparative advantage in coffee Maldonia has a comparative advantage in both goods Lamponia has a comparative advantage in both goods Maldonia has a comparative advantage in coffee adn Lamponia has a comparative advantage in potatoes

COFFEE (Milions of pounds) 48 42 36 30 24 18 PPF 12 6 0 0 ——— 1 Maldonla 6 12 18 24 30 36 POTATOES (Millions of pounds) 42 48 (?) COFFEE (Millions of pounds) 48 42 24 18 12 6 0 0 PPF 6 Lamponia 1 42 48 12 24 30 36 POTATOES (Millions of pounds) 18 ? Consider the above two graphs which represent production possibilities. What are the comparative advantages? Maldonia has a comparative advantage in potatoes and Lamponia has a comparative advantage in coffee Maldonia has a comparative advantage in both goods Lamponia has a comparative advantage in both goods Maldonia has a comparative advantage in coffee adn Lamponia has a comparative advantage in potatoes

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1) Write a clearly positive economic statement referring to comparative advantage.Explain why is it a positive statement.
When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Maldonia and Desonia. Both countries produce grain and tea, each initially (i.e., before specialization and trade) producing 18 million pounds of grain and 9 million pounds of tea, as indicated by the grey stars marked with the letter A. Maldonia Desonia 48 48 42 42 36 36 PPF 30 24 18 PPF 18 12 12 9. 12 18 24 30 36 42 48 0. 6. 12 18 24 30 36 42 48 GRAIN (Millions of pounds) GRAIN (Millions of pounds) Maldonia has a comparative advantage in the production of while Desonia has a comparative advantage in the production of Suppose that Maldonia and Desonia specialize in the production of the goods in which each has a TEA (Millions of pounds) 24 30 TEA (Millions…
can someone help with part G Case Study1. Assume that the continent of Mainland has only two countries, Alpha and Beta, which produce only two goods, corn, and peanut. Each country has 42 labor hours per week allocated to the production of corn or peanut. Producing a ton of corn costs 2.8 hours to Alpha and 1.4 hours to Beta. On the other side, each ton of peanut costs 1.68 hours to Alpha and 4.2 hours to Beta. Using the above case study, respond to the following Questions by showing all your work: a. Draw the production possibilities frontier of each country and provide its equation with peanuts on the x-axis. b. Assume that each country decides to use half of its resources in the production of each good. Show these points on the graphs for each country as point A. c. Can Alpha produce Beta produce 20 tons of corn and 15 tons of peanut each? Justify your answer. (Hint: Use the PPF equations.) d. If these countries choose not to trade, what would be the total world production of…
Lawns Mowed Gardens Cultivated George 10 B 5 (D Jack 6 Table 2-5 shows the output per day of two gardeners, George and Jack. They can either devote their time to mowing lawns or cultivating gardens. 4 Refer to Table 2-5. Which of the following statements istrue? A) Jack has a comparative advantage in both tasks. George has a comparative advantage in both tasks. Jack has a comparative advantage in lawn mowing and George in garden cultivating. Jack has a comparative advantage in garden cultivating and George in lawn mowing. Ⓡ
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Asap Wichita — Farmers in Kansas, the biggest US producerof wheat, are abandoning their crops damaged by severedrought and cold.Some are spraying wheat fields with crop-killingchemicals and claiming insurance payouts in the beliefthat it is not worth harvesting the little grain that thereis, Reuters found on a three-day tour of the state. Othergrowers let cattle graze on the dismal-looking fields.Abandoning fields will reduce the crop of the world’sfifth-largest wheat exporter, with stocks expected to fallto a 16-year low. Large-scale abandonment deals aneconomic blow to farm towns and force wheat buyersto adjust procurement plans by buying the staple grainelsewhere.Nationally, winter-wheat farmers plan to abandon 33%of the acres they planted, the highest percentage sinceWorld War 1, the US department of agriculture said ina May 12 report.Kansas farmers are expected to abandon about 19% ofthe area planted last autumn, up from 10% in 2022 and4% in 2021, according to the report. But…
K Suppose the United States and Mexico both produce hamburgers and tacos. The combinations of the two goods that each country can produce in one day are presented in the table below. United States Mexico Hamburgers (in tons) 0 40 80 120 Which country has an absolute advantage in producing tacos? Mexico Tacos (in tons) 108 72 36 0 Hamburgers (in tons) 0 8 16 24 Tacos (in tons) 60 40 20 Which country has a comparative advantage in producing tacos? The United States Suppose the United States is currently producing 80 tons of hamburgers and 36 tons of tacos and Mexico is currently producing 16 tons of hamburgers and 20 tons of tacos. If the United States and Mexico each specialize in producing only one good (the good for which each has a comparative advantage), then a total of additional ton(s) of hamburgers can be produced for the two countries combined (enter a numeric response using an integer) and a total of additional ton(s) of tacos can be produced.
10)Suppose that in a three-hour block of time you can either make 2 batches of chocolate chip cookies or word-process 10 pages of text. In contrast, your roommate Keshawn can either make 4 batches of cookies or word-process 5 pages of text in a three-hour block of time. Which of the following is correct * a)Your comparative advantage is in making cookies. b)None of the above c)Keshawn's comparative advantage is in word-processing text. d)Your comparative advantage is in word-processing text.
Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Country Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) Felicidad 5 20 Contente 8 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Felicidad produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and…
Consider two neighboring island countries called Arcadia and Dolorium. They each have 4 million labor hours available per month that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Corn Jeans Country (Bushels per hour of labor) (Pairs per hour of labor) Arcadia 10 Dolorium 16 Initially, suppose Arcadia uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans, while Dolorium uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Arcadia produces 5 million bushels of corn and 30 million pairs of jeans, and Dolorium produces 12 million bushels of corn and 16 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces. Arcadia's…
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