Suppose country A specializes in toothpaste, country B specializes in toothbrushes, and both countries have constant opportunity costs. An earthquake hits only country A which causes half of its population to perish and means its maximum production for both toothbrushes and toothpaste would be halved. Which of the following would happen? O Country A's opportunity cost of producing toothbrushes will change O Country A's opportunity cost of producing toothpaste will change O Country B will still specialize in producing toothbrushes O Country B will now specialize in producing toothpaste

Suppose country A specializes in toothpaste, country B specializes in toothbrushes, and both countries have constant opportunity costs. An earthquake hits only country A which causes half of its population to perish and means its maximum production for both toothbrushes and toothpaste would be halved. Which of the following would happen? O Country A's opportunity cost of producing toothbrushes will change O Country A's opportunity cost of producing toothpaste will change O Country B will still specialize in producing toothbrushes O Country B will now specialize in producing toothpaste

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 4PA

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For each watch Marina produces, it gives up the opportunity to make 50 pounds of cheese. Cambria can produce one watch for every 100 pounds of cheese it produces. If specialization and trade were to occur betwee these two countries, which of the following is true with regard to opportunity costs in the two countries? O a. The opportunity cost of producing cheese is higher in Marina than Cambria. O b. The opportunity cost of producing cheese is identical in both countries. O c. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese. Od. The opportunity cost of producing watches is lower in Cambria than Marina. Oe. The opportunity cost of producing watches is higher in Marina than Cambria.
EX LO d @ Safari File Edit View History Bookmarks Window Help Lily ✓ My Home Courses Rental Options V Catalog and Study Tools Dashboard College Success Tips Help Career Success Tips Give Feedback « 100 CENGAGE MINDTAP PISTACHIOS (Millions of pounds) 48 42 36 Homework (Ch 03) The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce peas and pistachios, each initially (i.e., before specialization and trade) producing 18 million pounds of peas and 9 million pounds of pistachios, as indicated by the grey stars marked with the letter A. 30 24 18 PPF 12 6 0 0 C Mind Tap - Cengage Learning 6 S Shenandoah A 12 18 24 30 PEAS (Millions of pounds) 36 42 48 ? JAN 28 PISTACHIOS (Millions of pounds) 48 42 36 30 24 6 C MindTap - Cengage Learning 0 ng.cengage.com PPF 6 Denali A 12 18 24 30 36 PEAS (Millions of pounds) 42 48 Shenandoah has a comparative advantage in the production of while Denali has a comparative advantage in the…
The consumption possibilities frontier shows O a. a nation's opportunity cost of producing different goods for consumption. O b. possible mbinations of goods that residents of a nation consume at different income levels. O c. a nation's possible combinations of how much of one good exchanges for another. O d. the difference between the most that consumers would pay for a good and the actual amount they pay. possible combinations of goods available as a result of specialization and exchange. O e. a nation's bike 2 A H bike 2.jpg bike jpg.jpg * H a 5 6 & 7 + 00 8 f10 Save
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