Consider a straight-line PPF (production possibilities frontier) where lemonade is measured onthe vertical axis and shoes are measured on the horizontal axis. This nation does not trade withany other nation. It can produce a maximum of 2000 units of lemonade if it produces no shoes;it can produce a maximum of 400 shoes if it produces no lemonade.Calculate the slope of the PPF.(Carefully follow all numeric instructions. Include only numbers, a decimal point, and a negative sign asneeded. Round any intermediate steps to four decimal places and your final answer to two decimalplaces.)MacBook Air吕口F3F4F6F7F82$%&4579.RTYUFGH.K* O.

PPF depicts the combination of two goods which a nation can produce by utilizing given resources…

Answered: Consider a straight-line PPF…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The economy is operating under the PPF of a particular country. What does that mean?
How can you interpret the PPF slope?
Give only typing answer with explanation and conclusion PPC is concave to the point of origin because as we move along the curve, slope of PPC keep on decreasing. True or false?
Explain, using the PPF-indifference curve diagram, how a change in tastes can cause a country to shift from being an exporter of a good to being an importer of that same good.
ackground information: A worker in the United States and a worker in China can each produce 1,000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week, and a worker in China can produce 100 cell phones in a week. Answer the following questions based on this information.Part A: If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? (Show your work.)Part B: Calculate the opportunity cost of producing jeans for each country. (Show your work.)Part C: Calculate the opportunity cost of producing cell phones for each country. (Show your work.)Part D: Determine how many jeans should be produced by each nation. (Show your work). Part E: If each nation should specialize in producing jeans and cell phones, explain why; use economic terminology you have learned in this unit in your…
How can the Big Mac Index be used to make PPP comparisons between countries?
Suppose that there are 10 workers in each country and real GDP includes just televisions and cell phones. The U.S. produces 40 cell phones and 30 televisions, while South Korea produces 20 cell phones and 15 televisions. The two countries decide to specialize in the production of just one good based on the comparative advantage and trade the goods each other. They want to sell only excess of the units of the good they produced initially. Please draws the post-trade Production Possibility Set and mark the all combination output at pre and post trade equilibrium. What is the gains from trade for each country? (Exchange ratio in the market: 1 television = 3 cell phones)
3. Gains from trade Suppose there exist two imaginary countries, Glacier and Everglades. Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be produced by one hour of labor. Country Glacier Everglades Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) 8 16 5 20 Suppose that initially Glacier uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Glacier produces 8 million pairs of shorts and 48 million pounds of almonds, and Everglades produces 15 million pairs of shorts and 20 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two…
Germany and Sweden produce cars and kitchen appliances. Germany can produce 5 million cars per year if it produces only cars and no kitchen appliances, or 10 million kitchen appliances per year if it produces only kitchen appliances and no cars. Sweden can produce 1 million cars per year if it produces only cars and no kitchen appliances, or 3 million kitchen appliances per year if it produces only kitchen appliances and no cars. What is Germany’s opportunity cost of manufacturing 1 million cars per year? (Hint: Your answer should be in terms of millions of kitchen appliances per year.) What is Sweden’s opportunity cost of manufacturing 1 million cars per year? (Hint: Your answer should be in terms of millions of kitchen appliances per year.) What is Germany’s opportunity cost of manufacturing 1 million kitchen appliances per year? (Hint: Your answer should be in terms of millions of cars per year.) What is Sweden’s opportunity cost of manufacturing 1 million kitchen appliances per…
Between a straight line PPF and a concave PPF, which one is more realistic? Why? Defend your answer. (please solve it and make it plagarism free. donot copy paste)
Listen ●0M M 000 M On the above PPFs, imagine that the poor nation is operating at (5,18) and the wealthy nation is operating at (6,78). We can conclude that: (P.S. You might have to magnify the picture-try holding Ctrl and scrolling with the mouse wheel.) The poor nation is producing inefficiently and the wealthy nation is producing efficiently. The wealthy nation is producing inefficiently and the poor nation is producing efficiently. Both nations are producing inefficiently. Both nations are achieving production efficiency.
Suppose there exist two imaginary countries, Everglades and Yosemite. Their labor forces are each capable of supplying four million hours per day that can be used to produce chinos, pistachios, or some combination of the two. The following table shows the amount of chinos or pistachios that can be produced by one hour of labor. Country Everglades Yosemite Chinos Pistachios (Pairs per hour of labor) (Pounds per hour of labor) 4 6 16 12 Suppose that initially Yosemite uses 1 million hours of labor per day to produce chinos and 3 million hours per day to produce pistachios, while Everglades uses 3 million hours of labor per day to produce chinos and 1 million-hours per day to produce pistachios. As a result, Everglades produces 12 million pairs of chinos and 16 million pounds of pistachios, and Yosemite produces 6 million pairs of chinos and 36 million pounds of pistachios. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two…

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