Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Number of Units Produced in 40 Hours Bread 10 5 England Spain Labor Hours Needed- to Make 1 Unit of Cheese O 4 O 1/4 hour of labor. O Refer to Table 3-5. The opportunity cost of 1 unit of bread for England is O 1/4 unit of cheese. 4 hours of labor. 4 units of cheese. Bread 4 8 Cheese 40 10

Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Number of Units Produced in 40 Hours Bread 10 5 England Spain Labor Hours Needed- to Make 1 Unit of Cheese O 4 O 1/4 hour of labor. O Refer to Table 3-5. The opportunity cost of 1 unit of bread for England is O 1/4 unit of cheese. 4 hours of labor. 4 units of cheese. Bread 4 8 Cheese 40 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. Labor Hours Needed Number of Units to Make 1 Unit of Produced in 40 Hours Cheese Bread Cheese Bread England 1 40 10 Spain 10 England has a comparative advantage in the production of O a. cheese and Spain has a comparative advantage in the production of bread. Ob. neither good and Spain has a comparative advantage in the production of both goods. Oc. both goods and Spain has a comparative advantage in the production of neither good. O d. bread and Spain has a comparative advantage in the production of cheese.
24 of 38 For each hour worked, a U.S. worker can produce 4 loaves of bread, or 2 tons of steel. Canadian workers can produce 2 loaves of bread, or 1 ton of steel per hour. The information indicates that: O A. Canada has comparative advantage in steel, and the U.S. has comparative advantage in bread. O B. neither country has comparative advantage in steel or bread. O C. Canada has comparative advantage in bread, and the U.S. has comparative advantage in steel. O D. the U.S. has comparative advantage in both steel and bread. Unsure
Brazil and Colombia can both produce either bananas or coffee. Brazil can produce either 16 pounds of co and 0 pounds of coffee. Colombia can produce either 20 pounds of coffee and 0 pounds of bananas or 4 Bananas (pounds) Coffee (pounds) Country Brazil 64 Colombia 40 20 The opportunity cost of producing 1 pound of bananas for Brazil is O 16 O 1 O 0.25 16 O 48 pounds of coffee.
If Switzerland can produce chocolate at a lower relative cost than Belgium, what kind of advantage does Switzerland have? O a comparative advantage O an absolute advantage a resource advantage a production advantage
need help 10 Pancakes 90 8 7 6- 5 4 3 2 1- 0- 0 1 2 3 4 5 6 Eggs When is the opportunity cost of one pancake the highest? O 0 pancakes O 2 pancakes O 4 pancakes O 6 pancakes O 8 pancakes O 9 pancakes 7 8 9 10
Maximum Feasible Hourly Production Rates of Either Computers or Bicycles Using All Available Resources Product: United States China Computers Bicycles 3 6 Refer to the above table. Assuming that opportunity costs are constant, the opportunity cost of producing a bicycle in the United States is equal to and the opportunity cost of producing a bicycle in China is O A. 0 25 computer, 2 computers O B. 0.375 computer; 3 bicycles OC. 4 computers; 0.5 computer O D. 267 bicycles; 0.33 computers
For each hour worked, a U.S. worker can produce 4 dozen baguettes, or 2 tonnes of aluminum. Canadian workers can produce 2 dozen baguettes, or 1 tonne of aluminum per hour. The information indicates that O A. Canada has comparative advantage in aluminum, and the U.S. has comparative advantage in baguettes. OB. neither country has comparative advantage in aluminum or baguettes. O C. Canada has comparative advantage in baguettes, and the U.S. has comparative advantage in aluminum. O D. the U.S. has comparative advantage in both alyminum and baguettes.
9. Answer ALL parts of this question. Consider the standard trade model with two goods and two factors, labour and capital. (a) Suppose that a country experiences an increase in its labour force. Assume thatgood X is labour intensive and good Y is capital intensive. How would theproduction possibility frontier change as a result? Illustrate this with a simplediagram. (b) What does it mean for the “terms of trade” to improve and why might this matter interms of welfare? (c) Consider two countries: Home and Foreign. Each country produces two goods,cloth (C) and food (F). Assume Home is an exporter of cloth. Now suppose Homeimposes a 20 percent tariff on the value of food imports. What will be the effect ofthe food tariff on the relative price of cloth and terms of trade? Illustrate youranswer with a relevant diagram. You may assume that Home is large enough toaffect the world market.
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The table below shows the monetary value of the production of gems and steel respectively in the calendar year of 2019 for the nations of Turkey and Zimbabwe. Use it to answer questions regarding a possible trade scenario between the two nations. Year - 2019 Gems in billions of USD Steel in billions of USD Zimbabwe 1 0.2 Turkey 10 What is the opportunity cost of producing 1 billion dollars worth of steel in Zimbabwe? a 5 billion dollars worth of gems O b 1 billion dollars worth of gems O c 7 billion dollars worth of gems O d 10 billion dollars worth of gems 7.
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