Country A Good X 90 60 30 0 Good Y 0 30 60 90 1 unit of X. 0.75 units of X. O2 units of X. Country B 10 units of X. Good X 30 20 10 0 Good Y 0 Refer to Exhibit 34-1. The opportunity cost of one unit of Y in country A is 20 40 60
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![Exhibit 34-1
Country A
Good X
90
60
30
10
Good Y
0
30
60
90
1 unit of X.
0.75 units of X.
2 units of X.
Country B
10 units of X.
Good X
30
20
10
Good Y
0
Refer to Exhibit 34-1. The opportunity cost of one unit of Y in country A is
20
40
60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5e95ccb-20b0-47bf-809e-22f2d8888bee%2F84c320c2-c65b-49c7-9e39-e900769801d6%2F69wcq3g_processed.jpeg&w=3840&q=75)
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- 80 70 Guns (thousands of units) 8 888 60 50 40- 30 10 0 10 20 30 40 50 60 70 80 Butter (thousands of units) Refer to Exhibit 2-1. The PPF illustrates O constant opportunity costs between guns and butter. O that guns are more important than butter. increasing opportunity costs between guns and butter. O the opportunity cost of one unit of guns is four units of butter.. none of the aboveFigure 1 CASHEWS (Pounds) 400 360 320 + 280 240 Peru's PPF 200 160 120 A O 80 40 15 hour Refer to Figure 3-2. If the production possibilities frontier shown is for 32 hours of production, then how long does it take Peru to make one pound of cashews? hour 1 2 3 hours 7.5 hours 3 4 5 6 7 8 PEANUTS (Pounds) 9 10Suppose that opportunity costs are constant in both France and Italy. In France, maximum feasible hourly production levels are either 3 units of wheat or 5 units of wine. In Italy, maximum feasible hourly production levels are either 4 units of wheat or 10 units of wine. It is correct to state that A. Italy has a comparative advantage in producing wine. B. France has a comparative advantage in producing both wheat and wine. C. Italy has a comparative advantage in producing both wheat and wine. D. France has a comparative advantage in producing wine.
- Question 2: Good Y - 20 18 164 14 12 10 8 6 4 2 Germany's Production Possibilities Frontier Good Y 20 18 16 Spain's Production Possibilities Frontier 2468 10 12 14 16 18 Good X 2468 10 12 14 16 18 20 Good X Refer to the Figure. Germany has a comparative advantage in the production of O neither good and Spain has a comparative advantage in the production of both goods. O Good X and Spain has a comparative advantage in the production of Good Y. O Good Y and Spain has a comparative advantage in the production of Good X. O both goods and Spain has a comparative advantage in the production of neither good.ed 13 out of an In one hour, Sue can produce 50 caps or 10 jackets and Tessa can produce 70 caps or 7 jackets. Sue's opportunity cost of producing a cap is, cost of producing a cap is. jackets. has a comparative advantage in producing caps. If Sue and Tessa each specialize in producing the good in which they have a comparative advantage and trade 1 jacket for 7 caps, then Select one: O a. 5.0/10.0/Tessa/Sue loses but Tessa gains O b. 0.2/0.10/Sue/both Sue and Tessa gain 0 c.0.2/0.10/Tessa / both Sue and Tessa gain 0 d. 0.2/0.10/Sue / Tessa gains but Sueloses e. 5.0/10.0/Sue/both Sue and Tessa gain jackets and Tessa's opportunity 471. Gains from trade Consider two neighboring island countries called Dolorium 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 Dolorium Contente Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) 20 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 Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Dolorium 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 rye it produces.…
- Suppose our two PPFs for are: Germany Cars 20 8 1 1 6 Food O both countries 10 O Korea O neither country O Germany Cars 10 6 Korea B Food Which country has the comparative advantage in Cars? 10Bill and Fred bake cakes and pies. Bill's opportunity cost of baking 1 pie is 3 cakes. Fred's opportunity cost of baking 1 pie is 5 cakes. Who should bake the pie? Group of answer choices Fred Bill A country should specialize in producing the goods for which it has the highest opportunity cost. Group of answer choices True False If a country has a comparative advantage in producing fish, then they must also have an absolute advantage in producing fish. Group of answer choices True FalseRefer to the information provided in Table 33.2 below to answer the question(s) that follow. Table 33.2 China Thail and Tractors Tractors Motorcycles Motorcycles 300 225 300 250 10 200 10 150 15 150 15 75 20 100 20 25 50 30 Refer to Table 33.2. In Thailand, the opportunity cost of Select one: O A. a motorcycle is 1/15 of a tractor. O B. a motorcycle is 15 tractors. O C. a tractor is 20 motorcycles. O D. a motorcycle is 1/30 of a tractor.
- It takes Andy 45 minutes to complete a load of laundry and 15 minutes to wrap a present. It takes Bob 60 minutes to complete a load of laundry and 30 minutes to wrap a present. Which of the following statements is true? Select one : O A. Bob's opportunity cost of doing a load of laundry is wrapping 3 presents. O B. Bob has a comparative advantage in doing laundry. O C. Bob has a comparative advantage in wrapping a present. O D. Andy's opportunity cost of wrapping a present is doing 3 loads of laundry. O E. Bob has an absolute advantage in doing laundry.Person 1 can allocate her 8-hour day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 unit. Person 2, can produce 3 units of Good B or 4 units of Good A per hour. 1. Who has the comparative advantage in the production of Good B? a. Person 2 produces more than Person 1 using more resources b. Person 1 produces more than Person 2 using same resources c. Person 2 produce more than Person 1 using less resources d. Person 1 produce with lower opportunity cost e. Neither they both produce same quantity f. Person 1 produce more than Person 2 using more resources g. Person 2 produce more than Person 1 using less resources h. Person 2 produce with lower opportunity cost 2. Who has the comparative advantage in the production of Good A? a. Person 2 produces more than Person 1 using more resources b. Person 1 produces more than Person 2 using same resources c. Person 2 produce more than Person 1 using less…B) Comparative Advantage 1. Country A has 100 workers and Country B has 100 workers. Every worker in Country A can produce 6 tons of wheat per year, or can produce 12 tons of corn per year. Every worker in Country B can produce 2 tons of wheat per year, or can produce 10 tons of corn per year. a. Which country has an absolute advantage in wheat? b. Which country has an absolute advantage in corn? c. Which country has a comparative advantage in wheat? d. Which country has a comparative advantage in corn? Suppose initially the countries do not trade and Country A has 50 workers producing corn and 50 producing wheat. Country B has 30 workers producing corn and 70 producing wheat. Fill out the following table: Country A Country B Corn Produced Wheat Produced Now the two countries trade with one another. e. What good does Country A specialize in? f. What good does Country B specialize in? If these countries have all workers produce the product that their country has a comparative advantage…
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