Macroeconomics (12th Edition) (Pearson Series in Economics)
12th Edition
ISBN: 9780133872644
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 2, Problem 9SPA
(a)
To determine
Identify the
(b)
To determine
Identify the gains from the specialization and trade.
(c)
To determine
Identify the trade between S and T after the specialization of products.
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Students have asked these similar questions
8. Assume that now trade happens. The relative supply of wine in the home country is less than
the world (because the home country is better at making laptops). What would happen to the
relative price of wine to laptop in the home country when trade is allowed? Which group
would benefit from this?
a) Pwine/Ptaptop would increase and laptop manufacturers would gain
b) Pwine/Plaptop would increase and wine makers would gain
c) Pwine/Ptaptop would decrease and laptop manufacturers would gain
d) Pwine/Piaptop would decrease and wine makers would gain
Assume that Cliff and Paul were both producing wheat and corn, and each was dividing their time equally between the two. Then they decide to specialize in the product they have a comparative advantage in and trade 3 bushels of wheat for 3 bushels of corn. What would Cliff now be able to consume?
Question 10 options:
3 bushels of wheat and 3 bushels of corn
3 bushels of wheat and 4 bushels of corn
4 bushels of wheat and 3 bushels of corn
2 bushels of wheat and 3 bushels of corn
1. Aigerim and Nursultan are competitors and cook in street food cafes. In one-hour Aigerim can cook 20 burgers
or 30 hot dogs, Nursultan can cook 15 burgers or 25 hot dogs. Every day they work for 10 hours.
a) Who has the absolute advantage in each meal? Who has the comparative advantage? Explain
b) Draw the joint production possibilities frontier (PPF) for Aigerim and Nursultan for 10-hour work (hot dogs are
on x-axis).
c) Assume that Aigerim and Nursultan cook together. If they cook 125 hot dogs in 10 hours, how many burgers
they have to cook to work efficiently? Find that efficient choice on your graph. This choice can be achieved if
Aigerim cooks
hours for hot dogs and
hours for hot dogs and
hours for burgers;
hours for burgers.
Nursultan cooks
Chapter 2 Solutions
Macroeconomics (12th Edition) (Pearson Series in Economics)
Ch. 2.1 - Prob. 1RQCh. 2.1 - Prob. 2RQCh. 2.1 - Prob. 3RQCh. 2.1 - Prob. 4RQCh. 2.1 - Prob. 5RQCh. 2.1 - Prob. 6RQCh. 2.2 - Prob. 1RQCh. 2.2 - Prob. 2RQCh. 2.2 - Prob. 3RQCh. 2.2 - Prob. 4RQ
Ch. 2.2 - Prob. 5RQCh. 2.3 - Prob. 1RQCh. 2.3 - Prob. 2RQCh. 2.3 - Prob. 3RQCh. 2.3 - Prob. 4RQCh. 2.3 - Prob. 5RQCh. 2.4 - Prob. 1RQCh. 2.4 - Prob. 2RQCh. 2.4 - Prob. 3RQCh. 2.4 - Prob. 4RQCh. 2.4 - Prob. 5RQCh. 2.5 - Prob. 1RQCh. 2.5 - Prob. 2RQCh. 2.5 - Prob. 3RQCh. 2 - Prob. 1SPACh. 2 - Prob. 2SPACh. 2 - Prob. 3SPACh. 2 - Prob. 4SPACh. 2 - Prob. 5SPACh. 2 - Prob. 6SPACh. 2 - Prob. 7SPACh. 2 - Prob. 8SPACh. 2 - Prob. 9SPACh. 2 - Prob. 10SPACh. 2 - Prob. 11APACh. 2 - Prob. 12APACh. 2 - Prob. 13APACh. 2 - Prob. 14APACh. 2 - Prob. 15APACh. 2 - Prob. 16APACh. 2 - Prob. 17APACh. 2 - Prob. 18APACh. 2 - Prob. 19APACh. 2 - Prob. 20APACh. 2 - Prob. 21APACh. 2 - Prob. 22APACh. 2 - Prob. 23APACh. 2 - Prob. 24APACh. 2 - Prob. 25APA
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