Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making.makingKateJuliaTime to Make a Pie Time to Make a Cake45 minutes90 minutes60 minutes75 minutesMultiple Choiceboth ples and cakes; neither ples nor cakesples; cakesneither ples nor cakes; both pies and cakescakes: pieswhile Julia should specialize in

A party is said to have a comparative advantage over production of a good when it can produce a good…

Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making. making Kate Julia Time to Make a Pie Time to Make a Cake 45 minutes 60 minutes Multiple Choice both ples and cakes; neither ples nor cakes pies, cakes 90 minutes 75 minutes neither pies nor cakes; both pies and cakes cakes, pies while Julia should specialize in

Refer to the accompanying table. Based on their comparative advantage, Kate should specialize in making. making Kate Julia Time to Make a Pie Time to Make a Cake 45 minutes 60 minutes Multiple Choice both ples and cakes; neither ples nor cakes pies, cakes 90 minutes 75 minutes neither pies nor cakes; both pies and cakes cakes, pies while Julia should specialize in

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
Randy and Frank are both landscapers. Randy can mow 12 lawns per day or prune 15 trees. Frank can mow 16 lawns per day or prune 24 trees. Randy and Frank each work 240 days per year. a. Determine who has the absolute advantage at each task, what their respective opportunity costs are for mowing a lawn, and who has comparative advantage in each task. (Click to select) (Click to select) The opportunity cost of mowing a lawn for Randy is The opportunity cost of mowing a lawn for Frank is (Click to select) ✓has a comparative advantage in mowing lawns. (Click to select) has a comparative advantage in pruning trees. b. Assuming that only one of the tasks is performed, then together Randy and Frank can service a maximum of lawns or trees each year. ✓has an absolute advantage in mowing lawns. ✓has an absolute advantage in pruning trees. trees. trees. c. If each landscaper fully specializes according to his comparative advantage, then the maximum number of lawns that can be mowed annually is…
Macmillan Learning The accompanying graph shows the production possibilities frontier (PPF) for Rubberland. Rubberland only makes two products, rubber band balls and rubber hoses. The PPF shows the quantities of rubber band balls and rubber hoses Rubberland can produce in one day. Point A represents the combination of the two goods Rubberland currently produces. When a new method of rubber processing is discovered, the productivity of all Rubberland's inputs increases. Shift the PPF to show this change. Assume that Rubberland does not make more rubber band balls than it originally made at point A but still maximizes its output. Move point A to the new combination of the two goods. How many more rubber hoses does Rubberland now produce per day than before? Quantity of rubber band balls 200 180 160 140 120 100 Rubberland's Production Possibilities A 80 60 40 642 20 PPF 0 0 10 30 20 40 50 60 70 Quantity of rubber hoses 80 90 100 80 20 more hoses per day
Suppose that country A and country B start trading; 1 unit of cotton is exchanged with 1 unit of wheat. Draw the trade line into their PPF.
None
Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day. Who has the absolute advantage in making floral arrangements? Who has the absolute advantage in making deliveries? Draw the comparative advantage table. Calculate the opportunity cost of each task for each student. Who has the comparative advantage in floral arrangements? Who has the comparative advantage in deliveries? Suppose that, initially, both Jerome and Anita spend four hours each day doing floral arrangements and two hours each day doing deliveries. Now suppose they change their tasks, so that each individual does nothing but the task in which she or he has a comparative advantage. How many more floral arrangements and…
Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules. Production Possibilities Schedules Geppetto Lewis Puzzles Puppets Puzzles Puppets 90 75 10 8 60 15 12 16 45 20 8 24 30 25 32 40 030 Instructions: Enter your answers as a whole number. a. Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? Puzzles: (Click to select) Puppets: (Click to select) b. The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Lewis: puzzles and puppets Geppetto: puzzles and puppets
25. Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the comparative advantage in wine? a) Portugal b) England c) Both d) Neither e) Cannot tell
Bill and Melinda work for a firm that creates web pages and apps. The number of web page designs and apps each can produce in a week is given in the table below. Output per Week web pages designed apps created Bill 3 12 Melinda 2 4 Melinda has a comparative advantage in: Group of answer choices designing web pages creating apps both designing web pages and creating apps . neither designing web pages or in creating apps
This question is a file-upload question. Work your answer in a piece of paper, take a picture with your phone and upload the file. Using the table below answer the following: Points Soda Pizza A 10 В 1 6 3 a) Draw a PPF map (put soda in the vertical axis and pizza in the horizontal axis), showing all the points on the PPF. b) What is the opportunity cost of an extra pizza when you are on segment AB? What about when you are at segment CD? (i.e., how many sodas you have to give up in order to get an extra pizza? SHOW YOUR WORK!) c) What is your PPF's shape? Is it a straight line or does it have a bowed outward shape? Justify! d) Suppose that there is a new technology that affects ONLY the production of soda. Illustrate this effect on your PPF map.
Carlos takes 2 hours to pick a box of apples and 1 hour to make an apple pie. Son takes 4 hours to pick a box of apples and 4 hours to make an apple pie. Which of the following statements is NOT true? Carlos’s opportunity cost of making an apple pie is lower than that of Son. Carlos has a comparative advantage in making an apple pie. Son will specialize in picking apples to generate gains from trade. Son has an absolute advantage in picking apples.
1. There are two firms, firms A and B. Suppose that the two firms both produce Jam and butter and sell them for the same price. Shown below are the combinations of the two goods each firm can produce using the same amounts of labor and capital. Using the information below, which answer provides the most accurate depiction of comparative advantage and absolute advantage? Firm A Exhibit 1 Firm B Jam Butter Jam Butter 0 120 0 100 20 90 20 80 40 60 40 60 60 30 60 40 80 0 80 20 100 0 Firm B has a comparative advantage in butter, and absolute advantage in jam. Firm B has a comparative advantage in butter, and absolute advantage in jam. Firm B has a comparative advantage in butter, and absolute advantage in jam. Firm A has a comparative advantage in jam, and an absolute advantage in jam.