In a hunter-gatherer society lives 2 people, Adam and Smith. Adam picks 10 bananas a week. Smith gathers 50 wildberries a week. Both Adam and Smith enjoy eating bananas and wildberries and have product utility function. The equilibrium exchange rate is "1 banana = ??? berries"

Q: Suppose a world with two persons and two goods. Is the following statement True, False, Both (True…

A: The objective of the question is to determine whether each person in a two-person, two-goods world…

Q: In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10…

A: Opportunity cost in general terms can be understood as the benefits of a good or commodity lost due…

Q: Jefferson Franklin 1 wheat 1/2 cotton The table above shows the number of hours required to produce…

A: Opportunity cost refers to the value relinquished when opting for one choice over another, capturing…

Q: Suppose that there are two countries (A and B) and two goods (a labor-intensive good X, textile, and…

A: There are two countries (A and B) and two goods A labor-intensive good X, textile, and a…

Q: An American worker can produce either 5 cars or 8 tons of grain a year. A Japanese worker can…

A: United States: Production of 5 cars requires 1 workers in one year Implies, 5 cars = 1 worker 1 car…

Q: The production possibilities frontiers in the figure to the right show how many bananas and coconuts…

A: Opportunity cost is the amount of one good that is given up in order to produce one more unit of…

Q: Suppose Morgan can produce 50 pizzas or 200 beers in a day and Jack can produce 10 pizzas or 100…

A: An individual has the comparative advantage if it can produce a good at lower opportunity cost than…

Q: The countries USA and China produce computers and rice using only labor as an input. Available Labor…

A: Production possibility curve shows the combination of two goods that can be produced with the given…

Q: Assume that Derryland and Whetonia can switch between producing cheese and producing bread at a…

A: A country should specialise in a particular good in which it has a competitive advantage.

Q: Suppose that Portugal and Switzerland both produce jeans and stained glass. Portugal's opportunity…

A: Given information:There are two countries, i.e., Country P and Country SThey produce two goods,…

Q: If the fictitious country of Islandia puts all of its production resources into fish, it can produce…

A: Disclaimer :- since you asked multipart question we are solving only first 3 subpart of the…

Q: Debra can make either 12 cakes or 16 cookies in 4 hours. Sam can make either 6 cakes or 12 cookies…

A: ‘Comparative advantage’ refers to the ability to produce a good at a lesser ‘opportunity cost’ than…

Q: In one day, Dahyun can produce 20 cakes or 40 brownies, and Sana can produce 25 cakes or 125…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: The U.S. and Mexico both produce vehicles and tons of plastic, which are sold for the same price in…

A: The opportunity cost represents the potential benefits that one has to give up while choosing an…

Q: Z and S.A are trading partners.  Both produce metal ores (including lithium) and delivery trucks.…

A: A country has a Comparative advantage when the opportunity cost (OC) of producing a good or service…

Q: TRUE OR FALSE One implication of Walras’ Law for a two-commodity exchange economy is that if one…

A: Walras law says that if the demand and supply is satisfied for one good in any economy with two…

Q: Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of…

A: Absolute Advantage is defined as the ability of a country, individual or a firm to produce goods…

Q: Suppose Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive…

A: Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive goods in one…

Q: . What is the minimum possible amounts of XA İn the core? R

A: Given the utility function of two people; UA (xA, yB) = 6xA+yA UB (xB, yB) = xB+6yB The utility…

Q: Freedonia has a comparative advantage in the production of production of , while Sylvania has a…

A: Comparative advantage theory is based on a country's ability to produce a particular good or service…

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: The production possibilities frontiers in the figure to the right show how many bananas and coconuts…

A: Comparative advantage refers to the ability of the country or individual to produce the good at a…

Q: Suppose that Ireland and Liechtenstein both produce ale and wheat. Ireland's opportunity cost of…

A: Comparative advantage is the ability to produce goods and services at a lower opportunity cost than…

Q: China has a comparative advantage in textiles and an absolute advantage in both textiles and radios.…

A: Absolute advantage is when one country can produce a good using less resources as compared to the…

Q: wine SERE54321 90 80 70 60 50 40 30 20 10 PPF Portugal CPF 0 0 10 20 30 40 50 60 cloth wine 90…

A: PPF stands for Production Possibility Frontier, which is a graphical representation showing the…

Q: Assume two countries (the U.S. and China) produce and consume only two goods (smartphones and corn)…

A: The Production possibilities curve represents the combination of goods that the economy can produce…

Q: A market that is operating efficiently maximizes producer surplus. maximizes total surplus. O…

A: Hey, thank you for the question, since there is multiple question posted, according to our policy we…

Q: Consider 2 countries (the United States and the France) that use input such as labor to produce 2…

A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…

Q: Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to…

A: Absolute advantage occurs when a country can produce more of a good with the given resources.  A…

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: Consider two countries, Korea and Malaysia, and two goods, lumber and automobiles. Korea’s PPF is…

A: (1)Here, it is given that there are two nations (Korea and Malaysia) that produces two goods (Lumber…

Q: A country produces two goods: coconuts and umbrellas. Their production possibilities frontier (PPF)…

A: "Production possibility frontier or PPF represents the different combinations of the two goods that…

Q: Kneebonia imports grain from Elbonia, and Elbonia imports steel from Kneebonia. Which of the…

A: A county has comparative advantage in the production goods and services if it has lower opportunity…

Q: Suppose countries A and B produce and consume (assuming convex preferences) apples and bananas using…

A: Given:Labor force=100  Unit cost for apples in country A=2 Unit cost for apples in country B =1…

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: Suppose we consider the outcome in an exchange economy to be unfair, consumers of type A get a lot…

A: The study of how the distribution of wealth and goods influences social welfare is known as welfare…

Q: Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to…

A: The term O.C. describes the value of the next best alternative forgone when a decision is made. It…

Q: What is one possible price of capital-intensive goods (in terms of labor-intensive goods) that would…

A: In country A,  1 ton of capital-intensive goods  =200/200 =  1 ton of labor intensive good In…

Q: Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles…

A: The Heckscher-Ohlin model predicts trade patterns based on comparative advantage, while the Leontief…

Q: Consider an international trade model consisting of three countries X, Y, and Z. Suppose X uses…

A: The Leontief model is a technique to understand the flow of goods and services within an economy. It…

Q: Assume that the world economy is composed of only two countries (Canada and the United States) and…

A: When Canada and the US have 1 unit of labor they can produce 9 and 5 units of steel respectively or…

Q: There are two countries, Atlantis and Thule, and two goods, Clothing (C) and food (F) In Atlantis,…

A: The question is asking to determine the opportunity cost, absolute advantage, comparative advantage,…

Q: Consider two outcomes in a pure exchange economy: Outcomes 1 and 2. Outcome 1 is Pareto efficient.…

A: A consumer desires to maximize individual utility subject to a budget constraint. A utility function…

Q: Assume our standard model. It takes Andreas 25 minutes to knit a scarf and 50 minutes to knit a hat.…

A: Given:  Time taken by Andreas to knit a scarf : 25 minutes Time taken by Andreas to knit a hat : 50…