Microeconomics (6th Edition)
6th Edition
ISBN: 9780134106243
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 9, Problem 9.3.11PA
Subpart (a):
To determine
Subpart (b):
To determine
Trade relation.
Subpart (c):
To determine
Production possibility frontier and the trade.
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The graph on the right shows Tanzania's production possibilities frontier for cashew nuts and
mangoes. Assume that the output per hour of work is 8 bushels of cashew nuts or 2 bushels
of mangoes, and that Tanzania has 1,000 hours of labor. Without trade, Tanzania evenly splits its
labor hours between cashews and mangoes and produces and consumes at point A.
Suppose Tanzania opens trade with Kenya, and Kenya's output per hour of work is 1 bushel of
cashew nuts or 1 bushel of mangoes. Having the comparative advantage, Tanzania completely
specializes in cashew nuts. Locate the point of production for Tanzania.
bushels of mangoes and bushels of cashew
The point of production for Tanzania includes
nuts. (Enter your responses as whole numbers.)
Suppose Tanzania keeps 5,000 bushels of cashew nuts and exports the remaining 3,000 bushels.
The terms of trade are 1 bushel of mangoes for 2 bushels of cashew nuts. Locate the point that
shows the amount of cashew nuts and mangoes that Tanzania…
am. 118.
Countries A and B are both producers of wine and sausages. The table below shows their respective capacities for production of each of these goods should they devote all their resources to either good 1 (wine) or good 2 (sausages).
With reference to relevant theories of trade (absolute advantage/relative advantage), explain which country should concentrate on production of which good(s).
Country A:wine 10,000sausages 20,000
Country B:wine 6,000sausages 10,000
Chapter 9 Solutions
Microeconomics (6th Edition)
Ch. 9 - Prob. 9.1.1RQCh. 9 - Prob. 9.1.2RQCh. 9 - Prob. 9.1.3RQCh. 9 - Prob. 9.1.4PACh. 9 - Prob. 9.1.5PACh. 9 - Prob. 9.1.6PACh. 9 - Prob. 9.1.7PACh. 9 - Prob. 9.2.1RQCh. 9 - Prob. 9.2.2RQCh. 9 - Prob. 9.2.3PA
Ch. 9 - Prob. 9.2.4PACh. 9 - Prob. 9.2.5PACh. 9 - Prob. 9.2.6PACh. 9 - Prob. 9.2.7PACh. 9 - Prob. 9.2.8PACh. 9 - Prob. 9.2.9PACh. 9 - Prob. 9.3.1RQCh. 9 - Prob. 9.3.2RQCh. 9 - Prob. 9.3.3RQCh. 9 - Prob. 9.3.4RQCh. 9 - Prob. 9.3.5PACh. 9 - Prob. 9.3.6PACh. 9 - Prob. 9.3.7PACh. 9 - Prob. 9.3.8PACh. 9 - Prob. 9.3.9PACh. 9 - Prob. 9.3.10PACh. 9 - Prob. 9.3.11PACh. 9 - Prob. 9.3.12PACh. 9 - Prob. 9.3.13PACh. 9 - Prob. 9.4.1RQCh. 9 - Prob. 9.4.2RQCh. 9 - Prob. 9.4.3PACh. 9 - Prob. 9.4.4PACh. 9 - Prob. 9.4.5PACh. 9 - Prob. 9.4.6PACh. 9 - Prob. 9.4.7PACh. 9 - Prob. 9.4.8PACh. 9 - Prob. 9.4.9PACh. 9 - Prob. 9.4.10PACh. 9 - Prob. 9.4.11PACh. 9 - Prob. 9.4.12PACh. 9 - Prob. 9.4.13PACh. 9 - Prob. 9.4.14PACh. 9 - Prob. 9.4.15PACh. 9 - Prob. 9.5.1RQCh. 9 - Prob. 9.5.2RQCh. 9 - Prob. 9.5.3RQCh. 9 - Prob. 9.5.4RQCh. 9 - Prob. 9.5.5PACh. 9 - Prob. 9.5.6PACh. 9 - Prob. 9.5.7PACh. 9 - Prob. 9.5.8PACh. 9 - Prob. 9.5.9PACh. 9 - Prob. 9.5.10PA
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