Elijah and Aneesha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of maize and squash each farmer canproduce 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 theland and squash on the rest.SQUASH (Pounds)On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Aneesha's PPF.SQUASH (Pounds)ElijahAneesha180162144126108Show Transcribed Text9018036721625418On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamondsymbol) to plot Aneesha's PPF.14401261089072MaizeSquash(Pounds per acre) (Pounds per acre)123186090 180 270300 450 540 630 720 810 900MAIZE (Pounds)Elijah's PPFAneesha's PPFElijah's opportunity cost of producing 1 pound of squash issquash ispounds of maize. Because Elijah has acomparative advantage in the production of squash, and tElijah's PPFhas an absolute advantage in the production of maize, andAneesha's PPF(?)?has an absolute advantage in the production of squash,pounds of maize, whereas Aneesha's opportunity cost of producing 1 pound ofopportunity cost of producing squash than Aneesha,has ahas a comparative advantage in the production of maize.

Production possibility frontier is an economic tool that is used to graphical represent the ability…

has an absolute advantage in the production of maize, and has an absolute advantage in the production of squash, pounds of maize, whereas Aneesha's opportunity cost of producing 1 pound of opportunity cost of producing squash than Aneesha, has a has a comparative advantage in the production of maize. Elijah's opportunity cost of producing 1 pound of squash is squash is pounds of maize. Because Elijah has a comparative advantage in the production of squash, and

has an absolute advantage in the production of maize, and has an absolute advantage in the production of squash, pounds of maize, whereas Aneesha's opportunity cost of producing 1 pound of opportunity cost of producing squash than Aneesha, has a has a comparative advantage in the production of maize. Elijah's opportunity cost of producing 1 pound of squash is squash is pounds of maize. Because Elijah has a comparative advantage in the production of squash, and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Question 28 The table shows the maximum quantity of cars or motorcycles that can be produced by two countries, X and Y, using equal amounts of resources. Motorcycles Cars 10 60 20 80 Based on the data in the table, which of the following is true? A B D Country X Country Y E Country X has a comparative advantage in producing cars. Country Y has a comparative advantage in producing cars. Country X has an absolute advantage in producing cars. Country X has an absolute advantage in producing motorcycles. Country Y has a comparative advantage in producing motorcycles.
QUESTION 9 If Pedro can produce more bread in one day than Roger can produce in one day, then а. Pedro has a comparative advantage in the production of bread. b. Roger has a comparative advantage in the production of bread. C. Pedro has an absolute advantage in the production of bread. d. Roger has an absolute advantage in the production of bread. a d. QUESTION 10 the equilibrium price decreases, and the equilibrium quantity increases the equilibrium price increases, and the effect of quantity is ambiguous the equilibrium price increases, and the equilibrium quantity increases the equilibrium price decreases, and the equilibrium quantity decreases If the demand of soccer balls increases, then a. b. C. d. O a O b O O O O
Suppose that in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies. a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines? Blank 1 Blank 1
Bob and Doug spend their workdays making beer and donuts. Bob's Opportunity Cost of producing a unit of donuts is 0.8 units of beer; Doug's Opportunity Cost of producing a unit of donuts is 0.25 units of beer. From this information alone, we know that A. B. C. D. Doug has an Absolute Advantage in the production of donuts and Bob has an Absolute Advantage in the production of beer. Doug has a Comparative Advantage in the production of both donuts and beer. Bob's Opportunity Cost of producing a unit of beer is 1.25 units of donuts and Doug's Opportunity Cost of producing a unit of beer is 4 units of donuts. None of the above answers are correct.
Comparative Advantage: Suppose that the United States and Switzerland produce bicycles and chocolate bars: Bicycles per worker/year Chocolate Bars per worker/year 10,000 20,000 Switzerland 1 United States 5 a. The United States has an absolute advantage in both bicycles and chocolate bars, but which country has a comparative advantage producing bicycles? Chocolate bars? b. Assume there are 10,000 workers. Draw the production possibilities frontier for the United States prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on the U.S. production possibilities frontier (put bicycles on the x-axis and millions of chocolate bars on the y-axis). c. Assume there are 10,000 workers. Draw the production possibilities frontier for Switzerland prior to trade. Assume the two countries agree to exchange 7,000 chocolate bars per bicycle. Illustrate the effect of specialization and trade on Switzerland's…
Suppose that France and Italy both produce wine and cheese. France's opportunity cost of producing a case of cheese is 5 barrels of wine, while Italy's opportunity cost of producing a case of cheese is 10 barrels of wine. By comparing the opportunity cost of producing cheese in the two countries, you can tell that comparative advantage in the production of cheese and has a comparative advantage in the production of wine. Suppose that France and Italy consider trading cheese and wine. France can gain from specialization and trade as long as it receives more than of wine for each case of cheese it exports to Italy. Similarly, Italy can gain from trade as long as it receives of cheese for each barrel of wine it exports to France. more than Based on your answer to the last question, a price ratio between benefit both countries. has a barrels of wine per case of cheese will
I don't understand the second part of this homework. If Frankie and Johnny completely specialize according to comparative advantage, what will happen to the amount of eggs and milk? I have the opportunity cost calculated to understand who should do what in this case. But what will I do to that number?
If to produce 1 car Claire experiences an opportunity cost of 15 boots, and Mitch experiences an opportunity cost of 10 boots. Which of the following is true? O Mitch has a comparative advantage in boot production. Mitch has an absolute advantage in boot production. Mitch has an absolute advantage in car production. Mitch has a comparative advantage in car production.
Suppose 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.
Determine whether the scenarios below represent absolute or comparative advantage: A. Absolute Advantage B. Comparative Advantage ? ✓ 1. Brazillia can produce travelling with a lower opportunity cost than other countries ? ✓ 2. Carpentras can produce travelling services using 10 units of resources while Moldorie can produce it using 4 units of resources ? 3. A country uses fewer resources to produce a certain product v
Images are attached
7. What is the law of comparative advantage? According to the law of comparative advantage, what should be the distin- guishing characteristics of the goods a nation produces? What should be the distinguishing characteristics of the goods a na- tion imports? How will international trade influence people's production levels and living standards? Explain. 15