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.
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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.
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Use le below to answer the following questions. Table 2.1.1 The following table gives points on the production possibilities frontier for goods X and Y. Point Production of X Production of Y 40 B 4. 36 28 12 16 E 16 The data in Table 2.1.1 illustrate that Select one: A. the producer has a comparative advantage in the production of X. B. the producer has a comparative advantage in the production of Y. C. the opportunity cost of producing an additional unit of Y increases as the production of Y increases. O D. the opportunity cost of producing an additional unit of Y is constant as the production of X increases. O E. the opportunity cost of producing an additional unit of Y decreases as the production of Y increases. Clear my choice