1. Suppose that in the UK 15 million cars could be produced with the sameresources as 13 million airplanes. Suppose that in Poland 15 million cars couldbe produced with the same resources as 14 million airplanes. Which countryhas a lower opportunity cost in producing cars and why?2. In a one-factor economy, you have the following information: Home has 1,200units of labor available. It can produce two goods, apples and bananas. Theunit labor requirement in apple production is 3, while in banana production it is2. Foreign, has a labor force of 800. Foreign's unit labor requirement in appleproduction is 5, while in banana production it is 1.a. Graph Home's & Foreign production possibility frontier. Specify the maximumquantity that can be produced from both goods. Find the absolute value of theslope.b. Compare the opportunity cost of apples in Home and in Foreign.c. If apples are sold at $9/unit and bananas are sold at $5/unit. Find the wages paidin Home to produce apples and bananas.d. Identify the good that Home should specialize in and why.

Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Answered: Suppose that in the UK 15 million 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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Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. At present, Iowa produces 20 million bushels of wheat and 120 million bushels of corn, while Nebraska produces 20 million bushels of corn and 120 million bushels of wheat. a. If each state specialized in their respective comparative advantage: Iowa would produce million bushels of corn and million bushels of wheat. Nebraska would produce million bushels of wheat and million bushels of corn. Now assume Nebraska trades 120 million bushels of wheat for 120 million bushels of corn. With specialization and this trade, Nebraska will end up with million bushels of corn and million bushels of wheat, while Iowa will end up with million bushels of corn and million bushels of wheat. b.…
According to the "Principle of Comparative Advantage," a country should specialize in producing a good or service if it has:a) The highest opportunity cost b) The lowest opportunity cost c) The highest production cost d) The lowest production cost
I don't understand the second part of this homework. If Frankie and Johnny completely specialize according to comparative advantage, what will happen to the amount of eggs and milk? I have the opportunity cost calculated to understand who should do what in this case. But what will I do to that number?
Suppose that Portugal and Germany both produce jeans and wine. Portugal's opportunity cost of producing a bottle of wine is 5 pairs of jeans while Germany's opportunity cost of producing a bottle of wine is 11 pairs of jeans. By comparing the opportunity cost of producing wine in the two countries, you can tell that (GERMANY OR PORTUGAL) has a comparative advantage in the production of wine and (GERMANY OR PORTUGAL) has a comparative advantage in the production of jeans. Suppose that Portugal and Germany consider trading wine and jeans with each other. Portugal can gain from specialization and trade as long as it receives more than (1, 1/11, 1/5, 5 OR 11) of jeans for each bottle of wine it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than (1, 1/11, 1/5, 5 OR 11) of wine for each pair of jeans it exports to Portugal. Based on your answer to the last question, which of the following prices of trade (that is, price…
Hi! I am currently stuck on this question: Suppose there is an improvement in medical technology that enables more healthcare to be provided with the same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? I am confused as to why education increases. I know that the medical technology would increase the PPF because of the improvement, but wouldnt that decrease the opportunity cost of education because there is more technology? Thanks!
And since we're giving up some of one good, does that mean the opportunity cost is a negative number? Josie Well, we don't often say that "it cost us negative two dollars" or "we gave up negative two units of something," right? We just say "it cost two dollars" or "we gave up two units." Sabrina Yeah, the "we gave up" or "it cost us" part kind of implies the negative, doesn't it? Josie Exactly! So we put opportunity cost in terms of absolute value - we get rid of the negative sign. Continue Sabrina Okay, so what is the opportunity cost of one cake if we move from combination A to combination B? (If needed, round to two decimal places.) PPF PPF Point A B C D E Y2 Y1 O Number of Cookies 37 35 29 20 0 X1 X2 Number of Cakes 0 4 7 9 10 D X3 X4 E → Cakes
If Sport Country currently produces 100 bats and 400 rackets, what is the opportunity cost of an additional 100 bats? rackets. (only provide numbers, no alphabets or special characters). If Sport Country currently produces 300 bats and 300 rackets, what is the opportunity cost of an additional 100 bats? rackets. (only provide numbers, no alphabets or special characters). Suppose Sport Country currently produces 200 bats and 200 rackets. How many additional rackets could they produce without giving up any bats? rackets. (only provide numbers, no alphabets or special characters).
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Suppose you have a team of two workers: one is a baker and one is a chef. Your baker is talented but is inexperienced. Your chef is not only an elite chef but is also faster at baking. If your kitchen specialized according to absolute advantage, who would do the cooking? Who would do the baking? If your kitchen specialized according to comparative advantage, who would do the cooking? Who would do the baking? Which approach above is more efficient? Explain your answer.
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Suppose that in the UK 15 million cars could be produced with the same resources as 13 million airplanes. Suppose that in Poland 15 million cars could be produced with the same resources as 14 million airplanes. Which country has a lower opportunity cost in producing cars and why?