Table: Production Possibilities for Machinery and Petroleum Countries Machinery (M)(units) Petroleum (P)(units) United States 80 40 Mexico 60 180 Reference: Ref 8-2 Table: Production Possibilities for Machinery and Petroleum (Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum. The opportunity cost in Mexico of producing 105 units of petroleum is _____ units of machinery. Question 7 options: 90 35 160 70

Table: Production Possibilities for Machinery and Petroleum Countries Machinery (M)(units) Petroleum (P)(units) United States 80 40 Mexico 60 180 Reference: Ref 8-2 Table: Production Possibilities for Machinery and Petroleum (Table: Production Possibilities for Machinery and Petroleum) Use Table: Production Possibilities for Machinery and Petroleum. The opportunity cost in Mexico of producing 105 units of petroleum is _____ units of machinery. Question 7 options: 90 35 160 70

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter2: Scarcity And Opportunity Costs

Section: Chapter Questions

Problem 7E

See similar textbooks

Countries	Machinery (M) (units)	Petroleum (P) (units)
United States	80	40
Mexico	60	180

Similar questions

Review the numbers for Canada and Venezuela from Table 33.12 which describes how many barrels of oil and tons of lumber the workers can produce. Use these numbers to answer the rest of this question. Draw a production possibilities frontier for each country. Assume there are 100 workers in each country. Canadians and Venezuelans desire both oil and lumber. Canadians want at least 2,000 tons of lumber. Mark a point on their production possibilities where they can get at least 3,000 tons. Assume that the Canadians specialize completely because they figured out they have a comparative advantage in lumber. They are willing to give up 1,000 tons of lumber. How much oil should they ask for in return for this lumber to be as well off as they were with no trade? How much should they ask for if they want to gain from trading with Venezuela? Note: We can think of this ask as the relative price or trade price of lumber. Is the Canadian ask you identified in (b) also beneficial for Venezuelans? Use the production possibilities frontier graph for Venezuela to show that Venezuelans can gain from trade.
What do economists mean when they refer to improvements in technology?
How can there be any economic gains for a country from both importing and exporting the same good, like cars?
Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
Technological innovations shift the production possibility curve. Look at graph you sketched for Exercise 12.13 Which types of technologies should a country promote? Should clean technologies be promoted over other technologies? Why or why not?
Look at Exercise 33.2. Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowest opportunity cost of producing sweaters and who has the lowest opportunity cost of producing wine? Explain what it means to have a lower opportunity cost.
What does a production possibilities frontier illustrate?
What is comparative advantage?
Is it possible to have a comparative advantage in the production of a good but not to have an absolute advantage? Explain.
How does comparative advantage lead to gains from trade?