Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. (c) A tropical storm creates a shortage of the items needed in the production of Good B. Explain how thiswould affect the production possibilities curve.Select one:O PPF shifts inwardsO PPF shifts outwardsO Move to a point inside the PPFO Move outwards on Good A axis onlyO Move outwards on Good B axis onlyO Move inwards on Good A axis onlyO Move inwards on Good B axis only (III) Calculate the opportunity cost for Good B for Person 2.(iv) Calculate the opportunity cost for Good A for Person 1.opportunity cost for Good B for Person 2 Choose.opportunity cost for Good A for Person 1 Choose.(v) Who has the comparative advantage in the production of Good B?(vi) Who has the comparative advantage in the production of Good A?(v) Who has the comparative advantageChoose.in the production of Good B?(vi) Who has the comparative advantageChoose.in the production of Good A?

c) Move inwards on Good B axis only The maximum units of good B that can be produced will decrease…

Answered: Person 1 can allocate her 8-hour day…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Substitutions for goods cannot always be made. Which of the following is an example of a good that cannot be substituted with another good? gasoline jeans cow's milk cranberry juice
Suppose Daisy is willing to trade 3/4 tart to Maxine for each pie that Maxine makes and sends to Daisy. Which of the following combinations of pies and tarts could Maxine not then consume, assuming Maxine specializes in making pies and Daisy specializes in making tarts? a. 4 pies and 6 tarts b. 6 pies and 5 tarts c. 8 pies and 3 tarts d. 10 pies and 1.5 tarts.
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