Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
8th Edition
ISBN: 9781337368087
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 2, Problem 4PA
Sub part (a):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (b):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (c):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (d):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
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Students have asked these similar questions
Barbara and Antoni each work 8 hours a day producing lemonade and pizza. In eight
hours, Antoni can produce 400 pints of lemonade or 200 pizzas. In the same amount
of time, Barbara can produce 450 pints of lemonade or 300 pizzas. Currently, Antoni
decides to produce 200 pints of lemonade and 100 pizzas, and Barbara decides to
produce 180 units of each good.
Draw the production possibilities frontiers for Barbara and Antoni, with pizza on the
x-axis. Include current production points.
In your own words, explain absolute advantage. Who has absolute advantage in
lemonade production? In pizza production?
In your own words, explain comparative advantage.
Define opportunity cost and provide an example of an opportunity cost you face in
your own life.
Find Barbara's and Antoni's opportunity cost of producing pizza in terms of
lemonade. Who has a comparative advantage?
, Find Barbara's and Antoni's opportunity cost of producing lemonade in terms of
pizza. Who has a comparative advantage?
For…
Discuss the concept of Economic Goods.
Country X and Country Y are neighbours. Both Country X and Country Y can produce two goods: food and
clothing. In one week, Country X can produce 4,400 clothing units or 2,200 food units, or a mix of the
two. In one week, Country Y can produce 5,000 clothing units or 2,000 food units, or a mix of the two.
For both Country X and Country Y, their individual trade-offs between clothing units and food units are
constant, regardless of how they allocate their time. Currently, Country X produces 2,400 clothing units
and 1,000 food units per week while Country Y produces 2,500 clothing units and 1,000 food units per
week.
a. How is absolute advantage different from comparative advantage?
b. Which country has the absolute advantage in food production? Which country has the absolute
advantage in clothing production? Briefly explain.
Chapter 2 Solutions
Bundle: Essentials Of Economics, Loose-leaf Version, 8th + Lms Integrated Mindtap Economics, 1 Term (6 Months) Printed Access Card
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- Elijah and Aneesha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of maize and squash each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing maize or squash or to produce maize on some of the land and squash on the rest. SQUASH (Pounds) On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. SQUASH (Pounds) Elijah Aneesha 180 162 144 126 108 Show Transcribed Text 90 180 36 72 162 54 18 On the following graph, use the blue line (circle symbol) to plot Elijah's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Aneesha's PPF. 144 0 126 108 90 72 Maize Squash (Pounds per acre) (Pounds per acre) 12 3 18 6 0 90 180 270 300 450 540 630 720 810 900 MAIZE (Pounds) Elijah's PPF Aneesha's PPF Elijah's opportunity cost of producing 1 pound…arrow_forwardViktor is a lawyer who loves filing legal briefs and motions. His goal is to get as many legal briefs and motions filed as possible. Viktor has a colleague, Mr. Bean, who can also write briefs and motions. The number of legal briefs and motions each can write in one day is shown in the table below. a. Fill in the rest of the table with the opportunity cost of legal briefs and motions written for each person. Be sure to include the units. b. If the two colleagues decide to specialize, who will write legal briefs and who will write legal motions? c. What is the range of legal briefs exchanged for one legal motion in order to make the terms of trade beneficial (better than not trading) for both colleagues? Maximum Legal Briefs Maximum Legal Motions Opportunity Cost of 1 Legal Brief Opportunity Cost of 1 Legal Motion Viktor 2 3 Mr. Bean 4 3arrow_forwardWhat is the circular flow diagram, and what does it demonstrate? What are the two main categories of participants in markets? Which determines in a free market what goods and services are produced?arrow_forward
- Let assume, you live in an economy where two goods are being produced (say x and y) and labor can be allocated in the production of either good freely, but the other factor is specific. For your more information, good X" can be produced with labor and capital and good "y" can be produced with labor and land. Given the situation, a) How much does the each good the economy produced? b) How much labor will be employed in each sector?arrow_forwardWe have two individuals, A and B, who works 40 hours per week each. They each consume food and clothing. It takes each person 10 hours to set up the production of food, and thereafter it takes 1 hour per production of 1 unit of food. How many units of food can each person produce in 1 week?arrow_forwardMatch each good with either "final good" or "intermediate good". Cowhide, purchased by a tanner, to be made into a belt for retail sale [Choose ] intermediate good final good A new guitar sold by a music store to a child learning to play [Choose ] intermediate good final good A ton of steel that will be used to make several new cars [Choose ] intermediate good final good A new car sold to a nice old lady who only drives it to church on Sundays [Choose ] intermediate good final good Flour used by a pizza restaurant to make a pizza [Choose ] intermediate good final good Cement purchased by a homeowner to repair a sidewalk [Choose ] intermediate good final good Cement purchased by a contractor to build a sidewalk for a new house [Choose ] intermediate good final good A pizza oven used by a restaurant to make pizza [Choose ] intermediate good final goodarrow_forward
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