Refer to the figure above. If cars are capital intensive and furniture is labor intensive, then according to the HO theory, then this country... (select all that apply). HINT: this PPF is drawn so that it does NOT hug either axis. Use the graph to identify which good is imported and which good is exported. This will help you answer the question. is capital abundant is labor abundant ✔ imports cars

Refer to the figure above. If cars are capital intensive and furniture is labor intensive, then according to the HO theory, then this country... (select all that apply). HINT: this PPF is drawn so that it does NOT hug either axis. Use the graph to identify which good is imported and which good is exported. This will help you answer the question. is capital abundant is labor abundant ✔ imports cars

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Note: Please help with last graph and if anything already done is incorrect!
Unsure how to solve properly
0:25:00 13 of Lauren and Andrew can produce cherries or papayas. If they spent their day on producing either of the two goods, Lauren can produce up to 30 cherries or 10 papayas and Andrew can produce up to 50 cherries or 10 papayas. Lauren's opportunity cost of producing 1 papaya is Andrew's opportunity cost of producing 1 papaya is Lauren has the comparative advantage in advantage in → papaya. ◆ cherries. ◆ cherries. and Andrew has the comparative Lauren and Andrew can gain from trading if the price falls between → cherries for 1 Lauren and Andrew can produce cherries or papayas. If they spent their day on producing either ond Androw can produce
Draw a new curve, on the same graph, reflecting what the PPC might look like if new production technology is invented to speed up production in both industries. Combination Bananas metric tons (X axis) Coffee metric tons (Y axis) A 20,000 0 B 18,000 11,000 C 14,000 20,000 D 8,000 27,000 E 0 30,000
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) 16 Wine (Bottles) Cheese (Pounds) 12 8. 4. 25 20 15 2 3 3 4 10 4 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. O B. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese. Then, assume instead that France and…
Assume that two countries, A and B, can produce Beef and Barbecues and the production possibilities frontiers of two countries are represented by: Country A: Beef = 30 - 1.25 BBQ and Country B: BBQ = 15 - 0.5 Beef Barbecues are measured in units, beef in kilograms. a) On a single chart, graph the production possibility frontiers for Country A and for Country B. Make sure you use a good scale and mark all your axes and important curves or points. b) Interpret the slope and the shape of the PPF for each country and make the relevant comparisons. c) Assume that each country allocates half of its resources to the production of beef and half of its resources to the production of barbecues. Under autarky (No trade), how much would each country consume of the two products? Plot these points on the graph as Ca and Cb respectively d) Should either of these countries specialize in the production of beef and/or barbecues? If yes, explain which country and which products and why. If they…
I need help with questions 9 and 10. For question 9, since the x and y value are the same, I dont know how to identify in what type of production Pam has a comparative advantage in. For question 10, I do not understand how to calculate the combined output according to each person's specialization.
Suppose a country which produces only agricultural goods and electronic goods. Both goods use capital and labour as production inputs, however, the agricultural goods are assumed to be more labour-intensive. On three separate graphs, draw the “original” production possibility boundary (electronic goods on the horizontal axis, agricultural goods on the vertical axis) and illustrate each of the following situations: a. the country observes large increases in immigration; b. there is a technological improvement in the production of military goods only;c. a neighbouring country threatens to invade and the country responds by devoting more resources to military goods.
Give a definition of an advance in technology. Suppose that you are drawing a PPF for civilian goods and military goods, describe the effect on the PPF of an advance in technology in both civilian goods and military goods. How would the impact on the PPF be different if the technological improvement only helped in the production of military goods, but not civilian goods?
9. Draw a PPF curve for the macroeconomy of Germany (a large producer of capital goods). Assume that Germany has an unemployment rate of 7%. (Hint: draw the dashed line assuming a full employment level of 4.5% unemployment rate and consider only consumption and capital goods in the economy.)
Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies: A Movies (number per year) B D Milk (gallons per year) the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage. no productive resources would need to switch from making milk to movies because point D is already efficient. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk.
Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150. Graph Foreign’s PPF. Construct the world relative supply curve of banana. What will happen if ? Graph the relative demand curve along with the relative supply curve of banana. Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples What is the equilibrium relative price of banana?