Discuss the opportunity cost you incur for some activity in your life. Additionally, what activity do you feel you have comparative advantage in?
Q: How do comparative advantage and absolute advantage differ? Absolute advantage means more can be…
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Q: The following graph shows the same PPF for Yosemite as before, as well as its initial consumption at…
A: Production possibility frontier shows different combination of two good or services that can be…
Q: Suppose the economy initially produces 12,000 pieces of clothing and 250 million barrels of oil,…
A: Loss of production of Steel in moving from point B to point C = 16 - 12 = 4 barrels of oil So…
Q: Assume our standard model. Andreas can knit 4 scarves per hour and 3 hats per hour. Katya can knit…
A: Given: In an hour, Andreas can knit 4 scarves and 3 hats. Katya can knit 12 scarves and 6 hats.
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A: The PPF or PPC is the curve that shows various possible combinations of two goods that can be…
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A: The central problem of economics is the scarcity of resources. The unlimited wants and the limited…
Q: Specialization and trade When a country has a comparative advantage in the production of a good, it…
A: Production possibility curve is a graphical representation that shows various combinations of two…
Q: Explain how scarcity is the common foundation for PPCS and comparative advantage
A: Scarcity is a fundamental concept in economics that means the condition where resources, including…
Q: According to the Heckscher-Ohlin model, Brazil will have a comparative advantage in oranges if the…
A: The Hakcher-Oli Allen model is an economic introduction that they can produce the country that can…
Q: Someone has a comparative advantage in producing a good if they can produce that good in greater…
A: The ability to create goods and services at a lower cost, without necessarily doing so at a higher…
Q: A e B i Suppose that there are 10 million workers in Canada and that each of these workers can…
A: The opportunity cost is the next best alternative cost. According to an individual perspective, if…
Q: A widget has an opportunity cost of 4 wadgets in Saudi Arabia and 2 wadgets in the United States.…
A: Opportunity cost is the units of the other good foregone in order to produce one unit of the given…
Q: One company produces only 2 goods: pillows and blankets and its PPF is represented in the graph…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Is the following statement true or false? Please explain. "Everyone has a comparative advantage."
A: The flow of goods and services across borders is known as the international trade. The economist…
Q: a)Identify an example of absolute advantage relative to the United States from your data tables. Be…
A: (a) The U.S take a shorter time to produce the products like corn, citrus, apparel, and computer…
Q: Suppose there are two individuals, Casey and Rick, who live in a very simplified world where only…
A: Opportunity cost (OC) of one good (commodity) in terms of other is the units of production of…
Q: Ecuador and Argentina both produce shrimp and wheat. Ecuador can produce 50 thousand pounds of…
A: The table shows production of shrimp and wheat by Ecuador and Argentina:
Q: "The Opportunity Cost of a Mission to Mars. The United States has plans to spend billions of dollars…
A: The United States has plans to spend billions of dollars on a missions to Mars, which is expected to…
Q: Suppose Bulgaria produces two types of goods: agricultural and capital. The following diagram shows…
A: The PPF is also referred to as the production possibility curve (PPC). It is a key economic concept…
Q: Draw a PPF for butter and guns production. a. Explain verbally and graphically the concept of “free…
A: PPF: production possibility frontier refers to the graphical representation of the combination of 2…
Q: Country A specializes in producing kiwis. Country B specializes in producing oranges. As a result,…
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Q: The advantage enjoyed by one country over another, when it has a lower opportunity cost in producing…
A: If country A is able to produce more amount of good X than country B with the same level of…
Q: Suppose the economy initially produces 12 million gallons of drinking water and 500 million tons of…
A: Opportunity cost shows the cost of one good in terms of other. It shows the forgone units of one…
Q: Sonya takes 5 minures to iron a shirt and 10 minutes to type a paper. Grace takes 5 minutes to iron…
A: The opportunity cost is the cost of the next best alternative when the good is put to the…
Q: You plan to travel in Europe this summer. If you do, you won't be able to take your usual summer job…
A: Answer: Introduction: Opportunity cost refers to the cost of the next best alternative forgone to…
Q: Freedonia Lamponia 16 16 14 14 12 12 PPF 10 10 8 8 PPF 4 2 2 + 4 8 10 12 14 16 2 4 8 10 12 14 16…
A: Comparative Advantage of a nation in producing certain goods is said to be the relative ability of…
Q: Taylor and Bobby are auto mechanics. Taylor takes 12 hours to replace an engine and 4 hours to…
A: Absolute advantage is when a person is able to produce more number of goods with same inputs. In…
Q: Write a clearly positive economic statement referring to comparative advantage. Explain why is it a…
A: Positive economic statements are the ones which do not necessarily have to be true but they can be…
Q: The United States and Canada have the production possibilities curves shown above. It is determined…
A: The formula is:The opportunity cost of production of a good = maximum production of other good /…
Q: Opportunity cost is an important factor in looking at comparative advantage. True False
A: Answer: Comparative advantage: a country has a comparative advantage in the production of a good…
Q: omework (Ch 02) 4. Shifts in production possibilities Suppose Ireland produces two types of goods:…
A: The production potential frontier is a graphic depiction of the ideal production balance between two…
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- I've already read the answer provided on this site, but it is not giving me the information I need. I understand the math for finding the opportunity costs for each item in each country. However, where are they getting the answer that 2.5 tons of chemicals is what the US will give up, and 1 ton of apparel is what China will give up? From videos I've seen on youtube, they basically state that as long as the cost is less than what the original opportunity cost is, then nations will trade. So, it costs China 4 apparel for every 1 ton of chemicals, and in the US it costs 1 apparel for every 3 tons of chemicals. Am I right to assume that as long as China can trade less than 4 apparel it will benefit, and as long as the US can trade less than 3 tons of chemicals it will benefit? If so, then what is the math being used to arrive at exactly 1 ton of Chemicals for 1 ton of Apparel for China, and 1 apparel for 2.5 tons of Chemicals for the US? I need to understand the math that is used to…Because of conflict and instability in Country X, millions of its citizens emigrate to Country Y. Which of the following best explains what will happen to Country Y's production possibilities curve (PPC)? A C E It will move to a point on its PPC at which it produces only consumer goods B It's PPC will not change, but consumption of goods will decrease Its PPC will shift outward over time-- D It will move to a point inside its PPC, indicating slower growth Its PPC will shift inward over timeAdam Smith favors a policy of laissez-faire in managing economic activities. Why? Economics deals with the efficient use of resources. Why? Marginal analysis produces more optimal outcomes when working with scarce resources. How? It is possible for everyone to enjoy a comparative advantage in a task of their choosing. Why? Larger marketplaces tend to generate more wealth than smaller marketplaces. Why? Calculate the opportunity cost of producing the first 10 and the last 10 missiles. Discuss if the frontier exhibits increasing opportunity costs Missiles vs. Milk (millions of gallons) 0 40 10 30 20 20 30 10 40 0 -Using the supply and demand model, discuss what would happen to the market price if… Incomes increase Technology improves -When ASU increased its tuition from $200 per credit to $250 per credit the enrollment declined from 50,000 to 40,000. Explain…
- What is the opportunity cost of one cake if we move from combination A to combination B?Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following question: Who has absolute advantage in the production of hamburgers and who has absolute advantage in the production of pancakes?Question 1: Germany and India only produce two goods. They have the same fixed resources, are equally efficient, and both countries have constant opportunity costs between the two goods. In one month, Germany can produce 200,000 automobiles or 60,000 hand-held computers. India can produce 150,000 automobiles or 50,000 hand-held computers. A. Graph the given information. B. What is the opportunity cost for Germany to produce automobiles? C. What is the opportunity cost for India to produce automobiles? D. What is the opportunity cost for Germany to produce hand-held computers? E. What is the opportunity cost for India to produce band-held computers? F. Which nation has the absolute advantage in automobiles, which has the absolute advantage in hand-held computers? G. Which nation has the comparative advantage in automobiles, which has the comparative advantage in hand-held computers? H. Can these nations benefit from trade? Explain how. Be detailed, use numbers and prove your answer.
- Opportunity cost is whatever you give up to get something. What is the opportunity cost of staying up all night to study for your economics final exam? What would you be giving up to stay up all night to study for your exam?PPF 16 14 Without Trade 12 With Trade 6. 4 0. 50 100 150 200 250 300 350 400 Wheat (millions of bushels) Now suppose that the United States offers to sell 10 million cars to Mexico in exchange for 150 million bushels of wheat. On the previous graph, use the grey point (star symbol) to indicate the consumption bundle Mexico can achieve with trade if it continues to consume 200 million bushels of wheat. Мexico accept the deal the United States proposes. Cars (millions) 10When a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than its trading partner. Then the country will specialize in the production of this good and trade it for other goods. The following graphs show the production possibilities frontiers (PPFS) for Yosemite and Rainier. Both countries produce com and lentils, each Initially (l.e., before specialization and trade) producing 30 million pounds of corn and 15 million pounds of lentils, as indicated by the grey stars marked with the letter A. LENTILS (Milions of pounds) 80 70 60 50 40 30 20 10 0 80 70 60 80 50 70 Note: Dashed drop lines will automatically extend to both axes. 40 60 30 50 20 40 10 30 PPF 0 20 10 0 0 0 Yosemite has a comparative advantage in the production of while Rainler has a comparative advantage in the production of . Suppose that Yosemite and Rainier specialize in the production of the goods in which each has a comparative advantage.…
- Randy and Frank are both landscapers. Randy can mow 12 lawns per day or prune 15 trees. Frank can mow 16 lawns per day or prune 24 trees. Randy and Frank each work 240 days per year. a. Determine who has the absolute advantage at each task, what their respective opportunity costs are for mowing a lawn, and who has comparative advantage in each task. (Click to select) (Click to select) The opportunity cost of mowing a lawn for Randy is The opportunity cost of mowing a lawn for Frank is (Click to select) ✓has a comparative advantage in mowing lawns. (Click to select) has a comparative advantage in pruning trees. b. Assuming that only one of the tasks is performed, then together Randy and Frank can service a maximum of lawns or trees each year. ✓has an absolute advantage in mowing lawns. ✓has an absolute advantage in pruning trees. trees. trees. c. If each landscaper fully specializes according to his comparative advantage, then the maximum number of lawns that can be mowed annually is…Comparative advantage does not address Question 10 options: whether specialization and trade benefit more than one party to a trade. whether absolute advantage or comparative advantage that really matters. how are the gains from trade shared among the parties to a trade. whether it possible for specialization and trade to increase total output of traded goods.Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day. Who has the absolute advantage in making floral arrangements? Who has the absolute advantage in making deliveries? Draw the comparative advantage table. Calculate the opportunity cost of each task for each student. Who has the comparative advantage in floral arrangements? Who has the comparative advantage in deliveries? Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and…
