Jack and Jill spend their time painting rooms and completing small repair projects. The table below shows their production possibilities schedules, which describe combinations of painting and repair projects they each can produce efficiently in a week. Production Possibilities Schedules Jack Jill Painting Repair Projects Painting Repair Projects 9 0 15 0 0 11 0 12 Which of the following statements is true if Jack and Jill base their work on comparative advantage and specialization?

Jack and Jill spend their time painting rooms and completing small repair projects. The table below shows their production possibilities schedules, which describe combinations of painting and repair projects they each can produce efficiently in a week. Production Possibilities Schedules Jack Jill Painting Repair Projects Painting Repair Projects 9 0 15 0 0 11 0 12 Which of the following statements is true if Jack and Jill base their work on comparative advantage and specialization?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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***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?
The concept of comparative advantage is used by both countries and companies. Use a two goods example and two countries or companies to explain the comparative advantage theory. Use this theory to justify if its worthwhile for countries or companies specialize.
Suppose now that Sylvania has a comparative advantage in the production of coffee. Again, Maldonia and Sylvania exchange 12 million pounds of lemons for 12 million pounds of coffee. The following graph shows the PPF for Sylvania, as well as its initial consumption at point A. Place a black point (cross symbol) on the following graph to indicate Sylvania's consumption after trade. 48 2 42 COFFEE (Millions of pounds) 38 PPF 30 24 18 122 O 0 6 12 Sylvania A 38 42 48 24 30 18 LEMONS (Millions of pounds) + Consumption After Trade ? <--Do graph After trade, Sylvania consumes million pounds of lemons as well as million pounds of coffee. 9, 12, 18, 24 9, 12, 18, 24 True or False: Without engaging in international trade, Maldonia and Sylvaniawould not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.) O True O False
The graph on the right shows Tanzania's production possibilities frontier for cashew nuts and mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels of mangoes, and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly splits its labor hours between cashews and mangoes and produces and consumes at point A. Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely specializes in cashew nuts. Locate the point of production for Tanzania. bushels of mangoes and bushels of cashew The point of production for Tanzania includes nuts. (Enter your responses as whole numbers.) Suppose Tanzania keeps 5,000 bushels of cashew nuts and exports the remaining 3,000 bushels. The terms of trade are 1 bushel of mangoes for 2 bushels of cashew nuts. Locate the point that shows the amount of cashew nuts and mangoes that Tanzania…
In Bangladesh, it takes 300 labor hours to produce one TV set and 5 hours of labor to produce one unit of textiles. The unit labor costs for the same goods in the U.S. are 100 labor hours to produce one TV and 2 labor hour to produce one unit of textiles. Tv Textiles 100 2 Bangladesh 300 5 U.S. Which country has an absolute advantage in the production of textiles? Which country has a comparative advantage in textiles? The * has an absolute advantage in the production of textiles as its unit labor costs are * than that of Bangladesh. The opportunity cost of textiles in the U.S is and in Bangladesh is * has a comparative advantage in textiles. Determine the range of international relative price of TV sets with respect to textiles. The range for the international relative price of the TV sets with respect to textiles is and
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?
I can catch 12 kg fish or produce 6 bottles of wine in a week. My neighbour can catch 4 kg of fish or produce 4 bottles of wine in a week. Who has a comparative advantage in wine? Who should specialize in wine if we coordinate our economic activities? My neighbour has a comparative in fish, so he should specialize in fish. My neighbour has a comparative in fish, so he should specialize in wine. My neighbour has a comparative in wine, so I should specialize wine. My neighbour has a comparative in wine, so he should specialize in wine. 09
The United States and Canada both produce cars and beer. The table below shows the production possibilities per worker in each country. For example, one worker in the US produces 8 cars or 10 cans of beer per week. Labor Force Cars Beer United States 200 8 10 Canada 100 20 14 Which country has a comparative advantage in beer production? Question 4 options: United States Canada
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.
Problem 2: Comparative Advantage and Gains from Trade Suppose that Dennis and Janice are roommates. If Dennis puts all his effort into doing laundry, he can wash 20 loads per week. if he puts all his effort into cooking meals, he can produce 30 meals. If Janice puts all her effort into doing laundry, she can wash 20 loads per week. If she puts all her effort into cooking meals, she can produce 20 meals. a) Draw the Production Possibilities Frontier for Dennis and for Janice. Before trade, who (if anyone) has the absolute advantage in the production of laundry and meals? b) Fill in the following chart. Based on your calculations, who has the comparative advantage in laundry and who has the comparative advantage in meals. Laundry Meals Opportunity Opportunity Cost of Cost of Laundry Meals Dennis 20 Janice 20 30 20 c) Assuming that before specialization and trade both Dennis and Janice spend half of their time on each task, what is the total laundry and meal production for the household.…
What economic impact have pandemics such as COVID-19, had on global trade? Include one example of correct use of all of the following in the short paragraph explaining what economic impact have pandemics such as COVID-19, had on global trade? Comma, Colon, Semicolons, Exclamations, Quote Marks, Apostrophes, Parenthese, Dashes, Hyphens.
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