The graph to the right depicts an economy, Home, which produces flowers and soybeans. Its production possibilities frontier is shown as TT. One of Home's isovalue lines is also shown as VV. Home exists and trades with a second country, Foreign which also produces flowers and soybeans. Assume that Home is maximizing its value of output. 1.) Using the point drawing tool, identify this maximizing point and label it with an X. Also assume that Home consumers maximize their utility. The indifference curve for Home is labeled IC. 2.) Using the point drawing tool, identify the point of consumption by Home consumers. Label this point Z. Carefully follow the instructions above and only draw the required objects. Which of the following statements is true? O A. Home exports 4 units of soybeans. OB. Home imports 4 units of flowers. OC. Home imports 2 units of soybeans. O D. Home exports 4 units of flowers. 26- 24- 22+ 20- 18- 16- 14- 12- 10- 8- 6- 4- 2+ 0+ 0 Trade in the Standard Model (Home) Soybean Production IC VV TT 2 4 6 8 10 12 14 16 18 20 22 24 26 Flower Production Q U

The graph to the right depicts an economy, Home, which produces flowers and soybeans. Its production possibilities frontier is shown as TT. One of Home's isovalue lines is also shown as VV. Home exists and trades with a second country, Foreign which also produces flowers and soybeans. Assume that Home is maximizing its value of output. 1.) Using the point drawing tool, identify this maximizing point and label it with an X. Also assume that Home consumers maximize their utility. The indifference curve for Home is labeled IC. 2.) Using the point drawing tool, identify the point of consumption by Home consumers. Label this point Z. Carefully follow the instructions above and only draw the required objects. Which of the following statements is true? O A. Home exports 4 units of soybeans. OB. Home imports 4 units of flowers. OC. Home imports 2 units of soybeans. O D. Home exports 4 units of flowers. 26- 24- 22+ 20- 18- 16- 14- 12- 10- 8- 6- 4- 2+ 0+ 0 Trade in the Standard Model (Home) Soybean Production IC VV TT 2 4 6 8 10 12 14 16 18 20 22 24 26 Flower Production Q U

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4 Use the following information to answer the questions below – Assume the following: (Alk/Akx)> (Aly/Aky) and (La/Ka)< (Lb/Kb) Where “a” gives you the amount of labor and capital going into the production of good X and good Y respectively based on technology in the two countries A and B. There is no taste bias. Based on your understanding of the relationships above good X is ___________(labor/capital) intensive and good Y is _________(labor/capital intensive). Next, Country A is ____________(capital/labor abundant and Country B is ____________ (capital/labor) abundant. Label the autarky consumption/ production points, draw the pre trade or domestic price ratio, and then draw the international price line and the label the free trade production/consumption points with the indifference curves, trade triangles, labeling the Exp and Imp! Write out the pre trade price ratio, the international price line, show the gains from trade and write out the pattern of trade! Do these…
Answer the following.
Graphing: Using the Production Possibilities Schedule above, make a Production Possibilities Frontier with proper point and axis labels. Production Combination Units of Bracelets I. A P L 1 E JOCONMSUBT D с G 0 10 20 30 40 50 60 70 80 90 100 110 120 130 Units of Rings 205 200 194 187 179 169 158 146 133 117 100 77 50 0
Hello! Please help me with this one! Thank you so much!
Given the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS(K) LACO,250) B(109 200) C C200, ISo) D(300, l00) E(GO0,0) CONSUMER 6000S (C) d. What is the opportunity cost of producing 1 more unit of consumer goods if the economy is currently producing at point D?
Apples (pounds) Your Production and Consumption After Trade 15- 10 15 20 Cherries (pounds) Your consumption point before trade is illustrated by point (Enter your response as a letter.) Your Neighbor's Production and Consumption After Trade Apples (pounds) 10 20 30 40 50 60 Cherries (pounds)
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
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…
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.)
Describe the income method and the production method
Given the following diagram of a production possibilities frontier for a country. Assume that this country produces only two types of goods, capital goods (K) and consumer goods (C). (Graph is not drawn to scale.) CAPITAL GOODS (K) LACO,250) B(409200) c C200, ISo) D (300, l00) E(GO0,0) CONSUMER 600as (C) e. Suppose that there is a technological improvement in producing consumer goods that results in twice as many units of consumer goods being produced from the available resources in this economy. Draw the new production possibility frontier for this economy given this change. Assume that there are no changes in technology with regard to capital good production.
13