Consider the figure on the right. Between points b and c, the opportunity cost of tons of steel (enter a tons of wheat (enter a positive whole number) is positive whole number).
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- Productivity Table Soup per unit of labor Swords per unit of labor Wesley 30 25 Fezzik 10 30 If each person specialized according to comparative advantage and later decides to move 4 units of labor to comparative disadvantage, what would be the result? Total soup production increases by 160, total sword production increases by 220 Total soup production decreases by 80, sword production increases by 220. Total soup production decreases by 20, total sword production increases by 160 Total soup production increases by 80, total sword production decreases by 220Q16eview Quiz Chapter#2 ns tulet10r.02.104 A nation can accelerate its economic growth by: O a. imposing tariffs and quotas on imported goods. O b. printing more money. c. reducing the number of immigrants allowed into the country. O d. adding to its stock of capital. 5. 7. 18. 19. 20. •- Icon Key A O G 9. étv me Ti MacBook Air 888 F3 F4 F5 F6 F7 F8 F9 %23 2$ % & 3 7 8 R T Y 云 < cO
- 1. There are two countries, NZ and AUS, which use the same technology for production of food and cloth. The labour (L) and capital (K) endowments areL=100andk=60forNZ,and L=50andk-20forAUS. Theinputs used in production in NZ and in AUS are given in the following table: NZ AUS Labour Capital Labour Capital Food aLF =4 akF=3a-LF =6 8-KF=2 Cloth alc =6 axc=5 a-Lc =8 a-xc=4 Which good is capital-intensive in NZ? In AUS? Which good is labour-intensive in NZ? In AUS? Which country is labour-abundant? Which is capital-abundant? Draw the PPF curves for the two countries. Which country has a higher relative supply of cloth if the countries face the same relative price of cloth? What is the level of free trade relative price of cloth compared to the two autarky relative prices of cloth? Which country exports what? Relate the answer to the Heckscher- Ohlin Theorem. Illustrate the imports and exports. Show using indifference curves that both countries gain from trade.Germany 300 900 T-shirts per year Turkey 500 250 T-shirts per year What is the slope of Germany's production possibilities curve? Optical instruments per year Optical instruments per yearPlease as soon as possible.thank you
- In che mid-1980s several of South Africa's maintrading partners imposed trade sanctions on SouthAfrica in an effort to bring an end to the then-prevailing policy of apartheid.South Africa mainly relied on the exports ofprimary commodities like gold, iron and other preciousmetals, while importing mainly capital goods.This almost instantly led to South Africa expe-riencing a shortage of capital goods, resulting insubdued economic growth. 31. In what did South Africa have a comparativeadvantage? 32.a.Draw a graph to illustrate production,consumption and trade in South Africabefore the imposition of trade sanctions.b.Was South Africa consuming inside, on oroutside its PPP? Explian your answer.c.Draw a graph to show the effects of tradesanctions on consumption and productionin South Africa.d. Did trade sanctrions change any opportunitycoSts in South Africa? If so, did theopportunity cost of everything increase?Did the opportunity cost of any itemsdecrease? Illustrate your answer…17. Assuming Portugal has 180 man-hours (mhrs) of labor resource available for production, and labor is the only resource, the per unit opportunity cost of cloth in Portugal is ____ bottles/yard. (Please do NOT reduce fractions to decimals.)4
- Steel 50 25 0 25 50 Chemicals Italy 1 ton of steel for 1/2 ton of chemicals. 1 ton of steel for 1/3 ton of chemicals. 1 ton of steel for 1 ton of chemicals Steel 1 ton of steel for 2 tons of chemicals. 30 20 0 20 Italy and Greece are the only two economies in the world and they can produce steel or chemicals. The production possibilities curves for the two countries are shown in the graphs. What is the cost ratio for Greece? Chemicals Greece 60Given the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS (K) LACO,250) B(409200) c C200, ISo) D (300, l00) E(GO0,0) CONSUMER 600as (C) e. Suppose that there is a technological improvement in producing consumer goods that results in twice as many units of consumer goods being produced from the available resources in this economy. Draw the new production possibility frontier for this economy given this change. Assume that there are no changes in technology with regard to capital good production.Question 3 The US and France each have 100 hours of Jabor to allocate between producing cheese and bread, With 1 Jabor hour, the US can produce either 100 Joaves of bread, or 1 wheel of cheese. With 1 labor hour, France can produce either 400 loaves of bread, or 2 wheels of cheese. Suppose the countries jointly decide to produce a combined amount of 200 wheels of cheese. What is the maximum amount of bread they can jointly produce? Answers: 20000 Joaves 40000 loaves O Joaves 10000 loaves