Question Three:Consider two commodities X&Y being produced by countries A&B. The available resourcesneeded to produce one ton of each commodity are given in the next table.Available resourcesUnits needed to produce 1 tonYCountry ACountry B15013802.10i. Calculate the amount of commodity X&Y produced if 50% of the resources are used forproduct X and the rest for product Y in each country.ii. Illustrate using charts how to increase the global efficiency by applying the Comparativeadvantage theory.

The comparative costs theory is based on the disparities in production costs of similar products…

Question Three: Consider two commodities X&Y being produced by countries A&B. The available resources needed to produce one ton of each commodity are given in the next table. Available resources Units needed to produce 1 ton Y. Country A Country B 150 1 3. 80 10 i. Calculate the amount of commodity X&Y produced if 50% of the resources are used for product X and the rest for product Y in each country. ii. Illustrate using charts how to increase the global efficiency by applying the Comparative advantage theory.

Question Three: Consider two commodities X&Y being produced by countries A&B. The available resources needed to produce one ton of each commodity are given in the next table. Available resources Units needed to produce 1 ton Y. Country A Country B 150 1 3. 80 10 i. Calculate the amount of commodity X&Y produced if 50% of the resources are used for product X and the rest for product Y in each country. ii. Illustrate using charts how to increase the global efficiency by applying the Comparative advantage theory.

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

“In what way does an understanding of the shifts in the PPC help businesses/countries make production decisions?” Rubric: ensure the importance of absolute and comparative advantage is made clear.
V2
The countries of Sanaton and Microtania each produce two goods: Airplanes and Computers. The table below lists the opportunity costs associated with producing each good, for each country. Country Opportunity cost of producing 1 Airplanes Opportunity cost of producing 1 Computers Sanaton 4 Computers 0.25 Airplanes 2 Airplanes Microtania 0.5 Computers Currently, Sanaton does not trade with Microtania, and on its own produces 19 Airplanes and 24 Computers. On their own, Microtania produces 30 Airplanes and 35 Computers. Calculate total world supply: Airplanes: → Computers: If Sanaton decided to change its production of Airplanes by -2, calculate the change in the production of Computers: If Microtania changed its production of Airplanes by 8, calculate the change in production of Computers: A
The table above shows the daily production possibilities for China and Malaysia in producing trucks and coffee using the same amount of resources. Based on the data provided, which of the following terms of trade are mutually beneficial for the two countries? A. 1 ton of coffee for 3 trucks B. 1 ton of coffee for 4 trucks C. 1 ton of coffee for 5 trucks D. 1 truck for 1 ton of coffee E. 1 truck for 5 ton of coffee
***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?
Please fill in the boxes below, and verify the top is right
COFFEE (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 1 Maldonia 36 30 POTATOES (Millions of pounds) 06 12 18 24 42 48 COFFEE (Millions of pounds) 48 42 36 30 24 18 12 6 0 PPF 1 0 6 Lamponia 18 42 12 24 30 36 POTATOES (Millions of pounds) 48 Consider the above two graphs which represent production possibilities. What are the comparative advantages? Maldonia has a comparative advantage in potatoes and Lamponia has a comparative advantage in coffee Maldonia has a comparative advantage in both goods O Lamponia has a comparative advantage in both goods O Maldonia has a comparative advantage in coffee adn Lamponia has a comparative advantage in potatoes
Food (Comparative Advantage) The consumption possibilities frontiers shown by the blue lines in the following exhibit assume terms of trade of 1 unit of clothing for 1 unit of food. What would the consumption possibilities frontiers look like if the terms of trade were 1 unit of clothing for 2 units of food? Production (and Consumption) Possibility Frontiers with Trade (Millions of Units Per Day) (a) United States (b) Izodia 600 500- 400 600 500 U 400 300 200 U 100 Food 300 200 100 13 0 100 200 300 400 Clothing 0 100 200 300 400 Clothing
Movement of Labor and Capital Between Countries In this question, we use the Rybczynski theorem to review the derivation of the Heckscher-Ohlin theorem. a. The accompanying diagram shows no-trade equilibriums on the Home PPFS. Suppose that through immigration, the amount of labor in Home grows. Move point A to the point on the new PPF indicating where production would occur with the same prices for goods. b. The point you found in part a does not illustrate where the no-trade equilibrium will actually occur. Place point B at the true no-trade equilibrium point on the new PPF, after immigration. 20 19 18 17 ouda 16 15 A 14 O13 12 11 10Relative price 7- 3 PPE PPF 012345 6789 10 11 12 13 14 15 16 17 18 19 20 Output of computens, Q Output of shoes, Q
3. Two areas, Europe and America, can produce only goods A and B, under constant costs as indicated below. What will be the result of free trade between the two areas? In Europe In America 1 unit of good A 2 hours of labor 3 hours of labor 1 unit of good B 4 hours of labor 5 hours of labor a. Europe will export A and B to America. b. Europe will import A and export B. c. Europe will import B and export A. d. Europe will import A and B from America. e. No trade will take place.
Please solve d, e, and f, it's urgent.
4.