Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of maize and squash each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the land and squash on the rest. Maize Squash (Pounds per acre) (Pounds per acre) Elijah 6 6 Aneesha 20 5 On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. Elijah's PPFAneesha's PPF0801602403204004805606407208001601441281129680644832160SQUASH (Pounds)MAIZE (Pounds)160, 16Y-Intercept: 96X-Intercept: NoneSlope: 0 Aneesha has an absolute advantage in the production of maize, andElijah has an absolute advantage in the production of squash. Elijah's opportunity cost of producing 1 pound of squash is pounds of maize, whereas Aneesha's opportunity cost of producing 1 pound of squash is pounds of maize. Because Elijah has alower opportunity cost of producing squash than Aneesha,Elijah has a comparative advantage in the production of squash, andAneesha has a comparative

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 2CQQ

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Elijah and Aneesha are farmers. Each one owns a 16-acre plot of land. The following table shows the amount of maize and squash each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the land and squash on the rest.

	Maize	Squash
(Pounds per acre)	(Pounds per acre)
Elijah	6	6
Aneesha	20	5

On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF.

Elijah's PPFAneesha's PPF0801602403204004805606407208001601441281129680644832160SQUASH (Pounds)MAIZE (Pounds)160, 16Y-Intercept: 96X-Intercept: NoneSlope: 0

Aneesha has an absolute advantage in the production of maize, andElijah has an absolute advantage in the production of squash.

Elijah's opportunity cost of producing 1 pound of squash is

pounds of maize, whereas Aneesha's opportunity cost of producing 1 pound of squash is

pounds of maize. Because Elijah has alower opportunity cost of producing squash than Aneesha,Elijah has a comparative advantage in the production of squash, andAneesha has a comparative

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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