1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Fish 25 Coconuts 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5;

1. Assume you are on an iceland, where you can produce different combinations of coconuts and fish that can be harvested in a given week. The table below shows these combinations. Notice that you can produce either all crabs, all pineapples, or a mix of the two. Fish 25 Coconuts 3 15 4 12 5 a) Draw PPF using the information from this table; b) Calculate opportunity cost of coconuts if you decide to increase their harvest from 3 to 5; c) Calculate the slope of the PPF if you increase their harvest from 3 to 5;

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Paul's PPF Sue's PPF Cheese Cheese 100 80 40 B 32 36 60 Ham 18 30 Ham In the graph above, suppose Paul is producing combination A and Sue is producing combination B when they decide to trade. You would expect Paul to specialize in producing [Select] *and Sue to specialize in producing (Select 1 so that the total production of Ham increases by Select and the total production of Cheese increases ISelect
Carmen and Dennis live on a desolate island. They spend their days fishing or climbing trees to collect coconuts. The following table shows how much of each activity Carmen and Dennis can produce for each hour of work. They each can work up to 12 hours a day. Fish per hour Coconuts per hour Carmen 40 8 Dennis 28 7 On a piece of paper, draw Carmen's PPF with fish on the horizontal (x) axis and coconuts on the vertical (y) axis. Carment's PPF extends from Question Blank 1 of 9 to Question Blank 2 of 9. (Hint: your answer should be in the form of a point (x,y).) Question Blank 3 of 9 has an absolute advantage in the production of fish, and Question Blank 4 of 9 has an absolute advantage in the production of coconuts. Carmen's opportunity cost of producing 1 coconut is Question Blank 5 of 9 fish, while Dennis' opportunity cost of producing 1 coconut is Question Blank 6 of 9 fish. Because Carmen has a Question Blank 7 of 9 opportunity cost of producing…
5. Opportunity cost and production possibilities Raphael is a skilled toy maker who is able to produce both cars and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Cars) (Kites) (Cars) (Kites) A 8 4 6 3 11 4 2 17 2 6. 19 E 8 20 2. B.
Salads (per hour) 40 35 30 25 ur buy 20 salads from joe 20 Joe buys 10 smoothies 15 from Lie 10 Joe's PPF Li's PPF is 30 15 20 25 40 Smeothles (per hour) The figure above shows Liz's and Joe's production possibilities for Salads and Smoothies. Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFS. Then, Joe suggests that they specialize and trade. He would produce only salads and Liz would produce only smoothies. Then, Joe says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie. Liz should A) accept Joe's offer since she will gain 4 salads, but no smoothies B) accept Joe's offer since she will gain 4 smoothies and 4 salads. OC) not accept Joe's offer since she would lose 2 smoothies and 2 salads. D) accept Joe's offer, as she will be as well off as with no trade.
5. Answer the questions using the following information. Aaron & Oscar decide to go into business together making iPads and Selfie Sticks. Using the information, answer the questions below. IPads hour Selfie Sticks hour per 25 per 9:41 Aaron 20 Oscar 10 25 a) Who has absolute advantage in making iPads? b) Who has absolute advantage in making Selfie Sticks? c) What is the opportunity cost of making one iPad for Aaron? (SHOW WORK, or you get NO CREDIT!)? d) What is the opportunity cost of making one Selfie Stick for Aaron? e) What is the opportunity cost of making one iPad for Oscar (SHOW WORK, or you get NO CREDIT!)? f) What is the opportunity cost of making one Selfie Stick for Oscar? g) Create a comparative advantage chart for Aaron and Oscar using the opportunity cost figures you found in parts c – f (create a chart like the one from your notes). h) Who has comparative advantage in making iPads? Who has comparative advantage in making Selfie Sticks? How do you know this? Circle the…
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Refer to the following production possibilities table for consumer goods (automobiles) and capital goods (forklifts): Production Alternatives Type of Production Automobiles A B D 2 4 8 Forklifts 30 27 21 12 a. Show these data graphically. Instructions: Use the tool provided 'PPC' to draw a PPC curve (plot 5 points total). 10 Tools 8 PPC 6. 4 10 20 30 40 50 Forklifts Upon what specific assumptions is this production possibilities curve based? (Click to select) b. If the economy is at point C, what is the (opportunity) cost of 2 more automobiles? What is the (opportunity) cost of 6 more forklifts? Which characteristic of the production possibilities curve reflects the law of increasing opportunity costs: its shape or its length? (Click to select) Automobiles
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EX LO d @ Safari File Edit View History Bookmarks Window Help Lily ✓ My Home Courses Rental Options V Catalog and Study Tools Dashboard College Success Tips Help Career Success Tips Give Feedback « 100 CENGAGE MINDTAP PISTACHIOS (Millions of pounds) 48 42 36 Homework (Ch 03) The following graphs show the production possibilities frontiers (PPFS) for Shenandoah and Denali. Both countries produce peas and pistachios, each initially (i.e., before specialization and trade) producing 18 million pounds of peas and 9 million pounds of pistachios, as indicated by the grey stars marked with the letter A. 30 24 18 PPF 12 6 0 0 C Mind Tap - Cengage Learning 6 S Shenandoah A 12 18 24 30 PEAS (Millions of pounds) 36 42 48 ? JAN 28 PISTACHIOS (Millions of pounds) 48 42 36 30 24 6 C MindTap - Cengage Learning 0 ng.cengage.com PPF 6 Denali A 12 18 24 30 36 PEAS (Millions of pounds) 42 48 Shenandoah has a comparative advantage in the production of while Denali has a comparative advantage in the…
25 Initial PPC 20 New PPC 15 10 2 3 4 5 BOATS PER DAY Suppose Yvette is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day. Now, suppose Yvette is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Yvette increases her production of boats, her opportunity cost of producing one more boat Suppose Yvette buys a new tool that allows her to produce tvice as many boats per hour as before but doesn't affect her ability to produce balls. Use the green points (triangle symbol) to plot her new PPC on the previous graph. Because she can now make more boats per hour, Yvette's opportunity cost of producing balls is it was previously. BALLS PER DAY
Both Geppetto and Lewis are toy store owners. They decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules. Production Possibilities Schedules Geppetto Puzzles AND108 80 60 40 28 0 Puppets 6 4 Lewis: 8 12 Geppetto: 16 20 Puzzles 50 48 30 20 18 B Lewis Puppets Instructions: Enter your answers as a whole number a. Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? Puzzles: (Click to select) puzzles and Puppets: (Click to select) b. The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? puzzles and ⒸADRUNVATA 5 ROMAN 10 15 20 25 puppets puppets