Consider the following scenario. Xavier and Yannis can switch between producing baskets and producing birdhouses. Xavier uses 8 hours to produce 1 basket and 2 hours to produce 1 birdhouse. Yannis uses 1.5 hours to produce 1 basket and 2 hours to produce 1 birdhouse. In 24 hours, Xavier can produce 3 baskets and 12 birdhouses, and Yannis can produce 16 baskets and 12 birdhouses. If they decided to trade with one another, at which of the following prices would both Xavier and Yannis gain from trade? Justify your answer 30 baskets for 15 birdhouses 30 baskets for 18 birdhouses 30 baskets for 24 birdhouses

Consider the following scenario. Xavier and Yannis can switch between producing baskets and producing birdhouses. Xavier uses 8 hours to produce 1 basket and 2 hours to produce 1 birdhouse. Yannis uses 1.5 hours to produce 1 basket and 2 hours to produce 1 birdhouse. In 24 hours, Xavier can produce 3 baskets and 12 birdhouses, and Yannis can produce 16 baskets and 12 birdhouses. If they decided to trade with one another, at which of the following prices would both Xavier and Yannis gain from trade? Justify your answer 30 baskets for 15 birdhouses 30 baskets for 18 birdhouses 30 baskets for 24 birdhouses

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 13SQ

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Please draw the two graphs with explanation, thank you Suppose that in the country of England, two goods can be produced on available agricultural land: wine and wool. Suppose that the opportunity costs of production are constant, so that the PPF is a straight line. Further, when all resources are devoted to wine production, England can produce 200 (thousand) barrels. When all resources are devoted to wool production, England can produce 400 (thousand) bushels of wool. Suppose that a bushel of wool could be traded for a barrel of wine, one-for-one, on the international market. Draw a diagram illustrating the original situation, and this new situation, with wool on the X-axis and wine on the Y-axis. Meanwhile, in the country of Portugal, wool and wine can also be produced according to a linear PPF. However, when all resources are devoted to production of wine, Portugal can produce 100 barrels, but when all resources are devoted to wool production, Portugal can produce 50 bushels.…
Suppose there are two individuals, Casey and Rick, who live in a very simplified world where only two goods are produced and consumed: rice and beans. The production opportunity cost for Casey is 4.00 kg4.00 kg of rice for every kilogram of beans. Rick has a production opportunity cost of 2.00 kg2.00 kg of rice for every kilogram of beans. Casey eventually realizes that, through trade, both individuals can be better off. Rick is willing to trade. What price can be settled between these two parties such that both individuals can enjoy more rice and beans? Give your answer to two decimals.
Nancy and Bill are auto mechanics. Nancy takes 4 hours to replace a clutch and 6 hours to replace a set of brakes. Bill takes 6 hours to replace a clutch and 8 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Nancy is The opportunity cost of replacing a set of brakes for Bill is (Click to select) has a comparative advantage in brake replacement. (Click to select) has a comparative advantage in clutch replacement. (Click to select) has an absolute advantage in brake replacement. (Click to select) has an absolute advantage in clutch replacement.
Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Which of the following choices would benefit both Chip and Monk if trade occurred? Please choose the correct answer from the following choices, and then select the submit answer button. 1 pound of fruit for 2/5 pound of nuts 1 pound of fruit for 1 pound of nuts. 1 pound of fruit for 3/4 pound of nuts 1 pound of fruit for 1/10 pound of nuts I dont understand the math breakdown for these types of trade question I realize Chip Fruit to nuts is 2:1 and Monk is 3:1 but that is where I dont undersand the further breakdown
Suppose that in the country of England, two goods can be produced on available agricultural land: wine and wool. Suppose that the opportunity costs of production are constant, so that the PPF is a straight line. Further, when all resources are devoted to wine production, England can produce 200 (thousand) barrels. When all resources are devoted to wool production, England can produce 400 (thousand) bushels of wool. Suppose that a bushel of wool could be traded for a barrel of wine, one-for-one, on the international market. Draw a diagram illustrating the original situation, and this new situation, with wool on the X-axis and wine on the Y-axis.
Nancy and Bill are auto mechanics. Nancy takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. Bill takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Nancy is 0.75 The opportunity cost of replacing a set of brakes for Bill is 0.50 (Click to select) v has a comparative advantage in brake replacement. (Click to select) v has a comparative advantage in clutch replacement. Neither v has an absolute advantage in brake replacement. Nancy has an absolute advantage in clutch replacement.
Suppose two roommates, Sam and Terry, agree that they should clean the apartment each week. It takes Sam one hour to vacuum, and one hour to clean the bathroom. It would take Terry 90 minutes to vacuum and 2 hours to clean the bathroom. Does Terry have a Comparative Advantage in one of these activities? Is it possible that if the roommates each do only one of the tasks every week they would have more combined free time than if they alternated weeks of vacuuming and bathroom cleaning?
Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in and trade 3 bushels of wheat for 3 bushels of corn. What would Cliff now be able to consume? Question 10 options: 3 bushels of wheat and 3 bushels of corn 3 bushels of wheat and 4 bushels of corn 4 bushels of wheat and 3 bushels of corn 2 bushels of wheat and 3 bushels of corn
Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. Assume, initially, that there is no possibility of trade between Elliot and Jordy. If Elliot wishes to consume 4 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 4 fish? Briefly explain your reasoning. If Jordy wishes to consume 2 fish per day, what is the maximum number of pineapples that he could consume each day in addition to the 2 fish? Briefly explain your reasoning. Now assume that trade is possible between Elliot and Jordy. If they want to continue to consume the same number of fish indicated in part (1), how many additional pineapples would they be able to collectively consume each day relative to…
Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. Antonio takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is The opportunity cost of replacing a set of brakes for Antonio is has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. has an absolute advantage in brake replacement. has an absolute advantage in clutch replacement. Antonio Isabella Antonio Antonio
Jason and Holly produce lollipops and chocolates. Their production possibilities are given by the following functions: Jason: Q = 140 - 10QC %3D Holly: Q = 110 - 5Qc !! Before they trade, Jason is producing and consuming 60 lollipops and 8 chocolates. Before they trade, Holly is producing and consuming 55 lollipops and 11 chocolates. Then they decide to specialize and trade based on comparative advantage. They agree to trade 66 lollipops for 9 chocolates. How many MORE lollipops will Jason have with trade compared to without trade? Answer:
Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Antonio takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Isabella is of a clutch replacement. The opportunity cost of replacing a set of brakes for Antonio is of a clutch replacement. has a comparative advantage in brake replacement. has a comparative advantage in clutch replacement. has an absolute advantage in brake replacement. has an absolute advantage in clutch replacement.