Prep1431008908070605040302010SubmittedCellphones0 4 8 12 16 20 24 28 22 36 40Suppose the figure shown represents the production possibilities frontier for Country A Country B offers to give 4 TVs to Country A forevery cellphone it receives, Assuming Country A fully specializes in cellphone production and that it wishes to consume 24 cellphonestotal how many TVs can Country A consume after trade? ligure shown represents the production possibilities frontier for Country A. Country B offers to give 4 TVs to Countryevery cellphone it receives. Assuming Country A fully specializes in cellphone production and that it wishes to consume 24 cellphoEotal, how many TVs can Country A consume after trade?Multiple Choice30 TVs48 TVs96 TVsQ Search< Prev3 of 20Next >

PPF is the production possibility frontier. PPF shows the production possibility of two goods in an…

Prep 143 100 8 90 80 70 60 50 40 30 20 10 0 Submitted Cellphones 4 8 12 16 20 24 28 22 36 40 Suppose the figure shown represents the production possibilities frontier for Country A Country B offers to give 4 TVs to Country A for every cellphone it receives. Assuming Country A fully specializes in cellphone production and that it wishes to consume 24 cellphones total how many TVs can Country A consume after trade?

Prep 143 100 8 90 80 70 60 50 40 30 20 10 0 Submitted Cellphones 4 8 12 16 20 24 28 22 36 40 Suppose the figure shown represents the production possibilities frontier for Country A Country B offers to give 4 TVs to Country A for every cellphone it receives. Assuming Country A fully specializes in cellphone production and that it wishes to consume 24 cellphones total how many TVs can Country A consume after trade?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q2
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.…
QUESTION 28 You are the Minister of Trade for a small island country in the South Pacific with the following monthly production possibilities curve: 500 450- 400 350 300+ 250 200 150 100 50 ↑lemonade 500 450 400 350 300 250 200 150 100 You are negotiating a deal with a neighboring island that has the following monthly PPC: 50 100 150 200 250 300 350 400 pias ↑lemonade 50+ 50 100 150 200 250 300 350 400 Refer to the graphs above. Both countries specialize exclusively in the product for which they have a comparative advantage. You have agreed to sell them 160 bottles of lemonade in exchange for 100 pizzas. After the trade, your country has a total of bottles of lemonade and pizzas. A. 400; 100. B. 400; 200. O C. 160; 200. ++ pizzas D. 240; 100.
Question 2: Good Y - 20 18 164 14 12 10 8 6 4 2 Germany's Production Possibilities Frontier Good Y 20 18 16 Spain's Production Possibilities Frontier 2468 10 12 14 16 18 Good X 2468 10 12 14 16 18 20 Good X Refer to the Figure. Germany has a comparative advantage in the production of O neither good and Spain has a comparative advantage in the production of both goods. O Good X and Spain has a comparative advantage in the production of Good Y. O Good Y and Spain has a comparative advantage in the production of Good X. O both goods and Spain has a comparative advantage in the production of neither good.
Previous activity Use the table of production possibilities below to answer the question that follows. United States Canada Pecans (tons) 15 8 Cranberries (tons) 5 4 Which range represents the mutually beneficial terms of trade for the United States and Canada? Canada offering between 2 and 3 tons of pecans for one ton of cranberries Canada offering between 0.33 and 0.5 tons of pecans for one ton of cranberries The United States offering between 0.33 and 0.5 tons of cranberries for one ton of pecans The United States offering between 0.33 and 0.5 tons of pecans for one ton of cranberries The United States offering between 2 and 3 tons of pecans for one ton of cranberries
QUESTION 13 wine 90 8888888 80 70 60 50 40 30 20 PPF Portugal 1 CPF 10. 0 0 10 20 30 40 50 60 cloth wine 90 80 70 60 50 40 30 20 10 England 1 PPF CPF 0 0 10 20 30 40 50 60 cloth 13. According to the above set of production possibilities and consumption (trade) possibilities frontiers, what will happen to production and relative prices once trade is opened between these two countries? O a) Production of cloth in Portugal will fall to zero, while the price of wine will fall to ½ yd/bottle. b) Production of cloth in England will fall to zero, while the price of wine will increase to ½ yd/bottle. c) Production of wine in Portugal will increase to 90, while the price of cloth will fall to 2 yd/bottle. d) Production of wine in England will increase to 60, while the price of cloth will fall to 3 bottles/yd.
A) Which nation has an absolute advantage in the production of cars?B) Which nation has an absolute advantage in the production of red wine?
Candonia has a comparative advantage in the production of , while Desonia has a comparative advantage in the production of . Suppose that Candonia and Desonia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of
Figure 2.2. Canadian Trade Possibilities Televisions 16 12 8 4 0 Canada's Transformation Schedule Televisions 8 12 International Terms of Trade Refrigerators Televisions and refrigerators Neither televisions nor refrigerators с 16 20 B 24 Figure 2.2 shows a straight-line production possibilities curve with televisions on the vertical axis and refrigerators on the horizontal axis for Canada. The intercept on the vertical axis equals 16 and on the horizontal axis equals 24. Point A shows a point where an indifference curve is tangent to the production possibilities curve where televisions on the vertical axis equal 8 and refrigerators on the horizontal axis equal 12. A downward sloping straight line representing the international terms of trade starts at a point where refrigerators equal 24; an indifference curve is tangent to this line at a point where televisions equal 12 and refrigerators equal 16. Referring to Figure 2.2, Canada has a comparative advantage in: Refrigerators