In one hour, Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Who has a comparative advantage in producing caps? If Sue and Tessa specialize and trade, who will gain?

In one hour, Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Who has a comparative advantage in producing caps? If Sue and Tessa specialize and trade, who will gain?

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

John and Jack run a car washing business. In one week John can wash 36 cars or he can wax 20 cars. In one week Jack can wax 12 cars or wash 24 cars. Based on the information given, has an absolute advantage in washing cars and has a comparative advantage in washing cars. O Jack : John O John : John O John : Jack O Jack : Jack « Previous f4 f5 f6 X f7 f10 4. 5 8 9 會图 86 图

When a country speciallizes in the production of a good, this means that it can produce this good at a lower opportunity cost than Its trading partner. Because of this comparative advantage, both countries benefit when they specialize and trade with each other. The following graphs show the production possibilitles frontlers (PPFS) for Maldonia and Sylvanla. Both countries produce lemons and coffee, each Initlally (that is, before specialization and trade) producing 18 million pounds of lemons and 9 million pounds of coffee, as Indicated by grey points (star symbols) labeled point A. Maldonia Sylvania 48 48 42 42 36 36 PPF 30 30 24 24 18 PPF 18 12 12 6 12 18 24 30 36 42 48 12 18 24 30 36 42 48 LEMONS (Milions of pounds) LEMONS (Millions of pounds) Maldonia has a comparative advantage in the production of while Sylvania has a comparative advantage in the . If each fully specializes (that is, produces only the good for which each has a comparative production of advantage), the most the…
Draw a new curve, on the same graph, reflecting what the PPC might look like if new production technology is invented to speed up production in both industries. Combination Bananas metric tons (X axis) Coffee metric tons (Y axis) A 20,000 0 B 18,000 11,000 C 14,000 20,000 D 8,000 27,000 E 0 30,000
***Please look at the screenshot for graphs*** Fill in the charts below with values based on the two Production Possibilities Frontiers above. Motor Vehicle Production in the United States (in millions) Cars Trucks 0 4 0 Motor Vehicle Production in Mexico (in millions) Cars Trucks 0 2 0 Which country has the absolute advantage in producing cars? Which country has the absolute advantage in producing trucks? Which country has the comparative advantage in producing cars? Which country has the comparative advantage in producing trucks? Should these two countries trade? Why or Why not?
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) 16 Wine (Bottles) Cheese (Pounds) 12 8. 4. 25 20 15 2 3 3 4 10 4 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. O B. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese. Then, assume instead that France and…
Consider the PPF of a country with movies on the horizontal axis and computers on the vertical axis. Show the effects of each of the following: War results in a loss of life for one in eight prime-age males
In an hour, Megan can produce 5 fruit smoothies or 15 ice cream sundaes, while Jensen can produce 17 fruit smoothies or 85 ice cream sundaes. Which statement is false about Jensen and Megan? Jensen has an absolute advantage in both goods. Jensen's opportunity cost of producing 1 smoothie is 5 sundaes. Megan has a comparative advantage in producing ice cream sundaes. O Megan's opportunity cost of producing 1 smoothie is 3 sundaes.
Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls, or install 6 outlets. In one hour, Bill can paint 5 walls, or install 5 outlets a. Amy has the absolute advantage in (Click to select) v while Bill has the absolute advantage in (Click to select) b. (Click to select) has the comparative advantage in painting. (Click to select) has the comparative advantage in outlets.
Q.1
So what is true about this combination of fish and water? The combination of 4 fish & 4 bottles of water is? a) Outside of Tabitha's PPF, but on my PPF b) Outside of Tabitha's PPF, and outside of my PPF Note- Tabitha has the Comparative Advantage for fish and you (Rhonda) have the comparative advantage for water. And at the end of the 12 hour day after we trade, both of us will each have 4 fish and 4 bottles of water. Do I look at their opportunity cost to solve this question?
The countries of Nickeltown and Lykesville each produce two goods: Ovens and Dishwashers. The table below lists the production for each good, for each country per year when each country uses half of their resources to produce each good. Country Production of Ovens Production of Dishwashers Nickeltown 105 Lykesville 147 What is the opportunity cost of producing 1 Ovens in Nickeltown Dishwashers 70 42 What is the opportunity cost of producing 1 Ovens in Lykesville Dishwashers ONickeltown OLykesville ONot enough information Which country has a comparative advantage in producing Ovens?
Wheat 8 Paul 10 Corn Wheat 6 4 Cliff Refer to Figure 3-1. What do the two producers have a comparative advantage in? Corn Paul has a comparative advantage in both wheat and corn. Paul has a comparative advantage in wheat, and Cliff has a comparative advantage in corn. Cliff has a comparative advantage in wheat, and Paul has a comparative advantage in corn. Cliff has a comparative advantage in both wheat and corn.