2. Comparative and absolute advantageJake and Latasha are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of barley and alfalfa each farmer canproduce per year on a given acre. Each farmer chooses whether to devote all acres to producing barley or alfalfa or to produce barley on some of theland and alfalfa on the rest.BarleyAlfalfa(Bushels per acre)(Bushels per acre)Jake40Latasha287On the following graph, use the blue line (circle symbol) to plot Jake's production possibilities frontier (PPF), and use the purple line (diamond symbol)to plot Latasha's PPF.120108Jake's PPF30°F Clear 120501108Jake's PPF968472Latasha's PPF604836241260120180240300380420480540600BARLEY (Bushels)has an absolute advantage in the production of barley, andhas an absolute advantage in the production of alfalfa.Jake's opportunity cost of producing 1 bushel of alfalfa isbushels of barley, whereas Latasha's opportunity cost of producing 1 bushel ofhas aalfalfa isbushels of barley. Because Jake has aopportunity cost of producing alfalfa than Latasha,has a comparative advantage in the production of barley.comparative advantage in the production of alfalfa, and30°F ClearALFALFA (Bushels)

Jake's can produce either 40 bushels of barley or 8 bushels of Alfalfa per acre of land Latasha can…

nd and alfalfa on the rest. Barley Alfalfa (Bushels per acre) (Bushels per acre) Jake 40 8. Latasha 28 7 n the following graph, use the blue line (circle symbol) to plot Jake's production possibilities frontier (PPF), and use the purple line (diamond symbol o plot Latasha's PPF.

nd and alfalfa on the rest. Barley Alfalfa (Bushels per acre) (Bushels per acre) Jake 40 8. Latasha 28 7 n the following graph, use the blue line (circle symbol) to plot Jake's production possibilities frontier (PPF), and use the purple line (diamond symbol o plot Latasha's PPF.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A ng.cengage.com + Welcome to Johnston Community College Bb Support Materials and Text Chapters Two and Three - .. * MindTap - Cengage Learning >> CENGAGE MINDTAP Q Search this course Homework (Ch 02) 4. Shifts in production possibilities Suppose Japan produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and cars, a capital good. A-Z Drag the production possibilities frontier (PPF) on the graph to show the effects of a technological advance in medicine that allows workers to live longer and have extended careers. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. (?) 360 300 PPF 240 180 At 120 60 PPF 10 20 30 40 50 60 WHEAT (Millions of bushels) O 9 2 9 O E…
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Kyoko can read 30 pages of astronomy in an hour. She can also read 20 pages of philosophy in an hour. She spends 6 hours per day studying. Use the blue line (circle symbol) to draw Kyoko's production possibilities frontier (PPF) for reading astronomy and philosophy.
B. Use the data in the table below to calculate the opportunity cost of moving from one production point to another. ( - Calculate the Movement from A to B - Calculate the Movement from D to C Production of tables (millions) 60 Production point Production of cars (millions) A 4 56 C 8 48 12 36 16 20 E F 20
G, 10
None
Draw a production possibilities frontier diagram for a farm able to produce corn or soybeans. What does a production possibilities frontier illustrate?
The graph shows the Production Possibility Frontiers of Writ (orange, dotted line) and Greg (green, solid line) when they gather pumpkins or branches individually. Drag and drop the points A, B and C to form the Production Possibility Frontier when Wirt and Greg specialize and exchange the production of branches and pumpkins. Note: Use the circle in the top, left corner of the textbox as the point. Drab Point A as the top left point. Drag Point B to the point at which the joint PPF changes slope. Drag Point C to the bottom right point. Total Branches 6 5 4 3 2 1 O 0 1 2 3 4 5 6 Point A Point B Point C Greg's PPF Wirt's PPF Total Pumpkins
Problem 1: Production Possibilities Frontier Consider an economy that produces bicycles and autos. The production possibilities schedule shown below denotes the points on the production possibilities frontier. Points Amount Bicycles Amount Autos A 10 B 8 D E 5 8 12 14 15 a) Draw the production possibilities frontier in a clearly labelled graph. You can assume the points on the frontier are connected by straight lines. Please put bicycles on the x-axis and autos on the y-axis. b) Is point E more efficient in production than point C? Explain. c) Based on this production possibility frontier, can the economy currently produce 8 bicycles and 10 autos? If not, explain what would need to happen to allow the economy to produce 8 bicycles and 10 autos. d) True/False/Uncertain (and explain): Point B more efficient in allocation than point A. e) Does this production frontier have increasing opportunity costs? Explain, and also explain why it is common for production frontiers to have increasing…
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On the following graph, use the blue line (circle symbol) to plot Nick's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Rosa's PPF. Nick and Rosa are farmers. Each one owns a 12-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye Nick 12 3 Rosa 15 5 (ROSA OR NICK) has an absolute advantage in the production of corn, and (ROSA OR NICK) has an absolute advantage in the production of rye. Nick's opportunity cost of producing 1 bushel of rye is__________bushels of corn, whereas Rosa's opportunity cost of producing 1 bushel of rye is_________ bushels of corn. Because Nick has a(HIGHER OR LOWER) opportunity cost of producing rye than Rosa, (NICK OR ROSA) has a comparative advantage in the…
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