QUESTION 12 wine Portugal 90 80 70 60 50+ 40- 30 20 10- 0 0 10 20 30 40 50 60 cloth PPF CPF wine 90 80 70 60 3 50 40 30 20 100 50+ 40+ 30+ England PPF CPF 0 10 20 30 40 50 60 cloth 12. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth? a) wine costs 1/2 man-hours/bottle and cloth costs 1/2 man-hours/yard in England. b) wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in England. c) cloth costs 1 man-hours/yard and wine costs 1 man-hours/bottle in Portugal. d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.

QUESTION 12 wine Portugal 90 80 70 60 50+ 40- 30 20 10- 0 0 10 20 30 40 50 60 cloth PPF CPF wine 90 80 70 60 3 50 40 30 20 100 50+ 40+ 30+ England PPF CPF 0 10 20 30 40 50 60 cloth 12. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth? a) wine costs 1/2 man-hours/bottle and cloth costs 1/2 man-hours/yard in England. b) wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in England. c) cloth costs 1 man-hours/yard and wine costs 1 man-hours/bottle in Portugal. d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 8PA

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QUESTION 12 wine 90 80 70 60 50- 40 30 20 10 PPF 104 0 Portugal CPF 0 10 20 30 40 50 60 cloth K wine 88288988 90 80 70 60 50 40 30 20 10 0 England PPF CPF L 0 10 20 30 40 50 60 cloth 12. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth? a) wine costs 1/2 man-hours/bottle and cloth costs 1/2 man-hours/yard in England. O b) wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in England. O c) cloth costs 1 man-hours/yard and wine costs 1 man-hours/bottle in Portugal. O d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.
QUESTION 12 wine 90 80 70 60 50- 40 30 20 10 PPF 104 0 Portugal CPF 0 10 20 30 40 50 60 cloth K wine 88288988 90 80 70 60 50 40 30 20 10 0 England PPF CPF L 0 10 20 30 40 50 60 cloth 12. If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth? a) wine costs 1/2 man-hours/bottle and cloth costs 1/2 man-hours/yard in England. O b) wine costs 1 man-hour/bottle and cloth costs 1 man-hourlyard in England. O c) cloth costs 1 man-hours/yard and wine costs 1 man-hours/bottle in Portugal. O d) wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in Portugal.
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wine 90 80 70 60 50 40 30 20 10 PPF ܝܝܝܕܘ Portugal CPF 0 10 20 30 40 50 60 cloth wine Ob) Production of cloth in England will fall to zero, while the price of wine will increase to %ydbo O (c) Production of wine in Portugal will increase to 90 while the price of cloth will tail to 2 yabole O() Production of wine in England will increase to 60, while the price of cloth will tall to 3 bottleslyd 88284821 90 80 70 60 50 40 30 20 10 England PPF 0 0 10 20 30 40 50 60 cloth 13. According to the above sel of production possibiles and consumption (trade) possibites onders, what will happen to production and relative prices once trade is opened between these two countes? O(x) Production of cloth in Portugal will fall to zero, while the price of wine will fall to % ydb CPF
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