Show on the PPF how both Germany and France gain from trade. B) How many units of apples and bananas will be produced in the world after trade?
Q: Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit…
A: We will answer only the first question as the exact question number is not mentioned here.
Q: 8. Problems and Applications Q Suppose that in a year an American worker can produce 100 shirts or…
A: A country has comparative advantage in production of a particular good when it is able to produce…
Q: Econ Land is trading corn in exchange for computers with the Republic of Trade now (you might…
A: The transfer of services and goods that takes place between individuals or entities being done in…
Q: If there is trade, which of the following is most likely? A. A country’s consumption…
A: Trade means the exchange of goods and services.
Q: The above tables represent the production possibilities frontiers (PPFs) for two different countries…
A: Answer - Need to find - The overall gain in production that would occur from each country…
Q: Eileen has an absolute advantage in the production of rye, and Clancy has an absolute advantage in…
A: Absolute cost advantage: - it is a principle of international trade given by Adam Smith which shows…
Q: gain from trade
A:
Q: England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50…
A: In any economy, the resources are scarce while the wants are unlimited. So, a choice must be made…
Q: Labor productivity coefficients for the US and Brazil are given by the following table: Country…
A: Production Possibility Frontier Curve- The production possibility curve shows all possible…
Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…
A: Comparative advantage refers to the phenomenon where the country can produce the good with the…
Q: There are 100 workers in Vietnam, and each worker can produce either 10 shirts or 2 hats. There are…
A: The maximum output of two items utilizing a certain quantity of input is measured by a production…
Q: Sara and Fran produce boards and sails for windsurfing. The tables show their production…
A: Comparative advantage refers to the ability to produce goods and services at a lower opportunity…
Q: Consider the PPF of a country with movies on the horizontal axis and computers on the vertical axis.…
A: Production Possibility Frontier refers to the curve that shows different possible combinations of…
Q: (d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should…
A: (d) According to Ricardian Theory, international trade is beneficial not only if the two countries…
Q: Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…
A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…
Q: Acme supply is analyzing a Production Possibilities Curve that compares the production of wrenches(…
A: Change in Y variable (Pliers) divided by change in X variable (Wrenches) is the slope of the PPF…
Q: Beth has an absolute advantage in the production of barley, and Andrew has an absolute advantage in…
A: Answer: Absolute advantage: Absolute advantage refers to the capacity of a person, firm, and region…
Q: A country may specialize in the production of a good that it can produce at a lower opportunity cost…
A: Maldonia comparative advantage = Coffee Lamponia comparative advantage = Grain After specialisation…
Q: Due to specialization and trade, Country 2 will be able to consume an extra ________ units of Good…
A: Theory of Comparative advantage analyses the economy's ability of a country to produce a particular…
Q: Suppose that a small country has a production possibility frontier (with two goods X and Y)…
A: When resources are limited, the production possibility frontier is a graph that depicts the numerous…
Q: Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian…
A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…
Q: Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523…
A: According to Ricardian Theory, international trade is beneficial not only if the two countries have…
Q: In this assignment, you will demonstrate your ability to draw a simple production possibilities…
A: 1. Scarcity exists as the nation has only 12 units of labor. Labor is needed for both gun and…
Q: Please assist; Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can…
A: Hello, thank you for the question. Since there are multiple subpart questions posted under the same…
Q: Consider the PPF of a country with movies on the horizontal axis and computers on the vertical axis.…
A: Production Possibility Frontier shows different possible combinations of amount of two goods that…
Q: Suppose France produces two types of goods: agricultural and capital. The following diagram shows…
A: Production possibility frontier illustrates the combinations of two goods that can be produced using…
Q: What is one possible price of capital-intensive goods (in terms of labor-intensive goods) that would…
A: In country A, 1 ton of capital-intensive goods =200/200 = 1 ton of labor intensive good In…
Q: Visualize a straight down-slope PPF (Production Possibility Frontier/Curve) for two countries the…
A: Opportunity cost is the forgone gain derived from the alternate option that is not chosen.
Q: has an absolute advantage in the production of alfalfa, and has an absolute advantage in the…
A: Production possibility frontier shows the combination of two goods that can be produced with the…
Q: There are 10 workers in Thailand and each can produce either 2 computers or 30 tons of rice. There…
A: The production possibility curve shows all the combinations of goods and services that are produced…
Q: Arthur can milk 10 goats per hour or shear 4 sheep per hour. Ben can milk 6 goats per hour or shear…
A: 1) Goat per hour Sheep per hour Arthur 10 4 Ben 6 3 2) Absolute advantage: It refers…
Q: Assume that Germany has 1200 units of labor available and it can produce two goods: apples and…
A: The Theory of Comparative-Advantage states that the economy with the least opportunity cost in…
Q: Amanda can allocate her 8-hour day between baking and cooking. Each hour devoted to baking yields 2…
A: An economic entity or nation is said to have an absolute advantage in the production of a good or…
Q: Axis its Output for YO-YOs is 20 million (per year) and X-Axis its Output for Tennis Shoes is 10…
A: According to details written about both the countries United States and Taiwan, United States has…
Q: Which of the following is not true about the Production Possibility Curve? a) An inefficient use of…
A: Production possibility curve The production possibility curve depicts the combination of two goods…
Q: Consider two points on the PPF point A, at which there are 10 apples and 20 pears, and point B, at…
A: The PPF is curved but rather than it is a straight line just because not all resources stand equally…
Q: . Suppose that the country of Greece has only one factor of production, labour, and can produce at…
A: Introduction The country Greece has only one factor of production; labor. Greece can produce olives…
Q: In Norway, one worker can produce either 8 pounds of smoked fish or 8 barrels of oil. In Saudi…
A: Given:- Production in Norway=8 pound of fish or 8 barrels of oil Production in Saudi Arabia=5 pound…
Q: iv. Which country has the Comparative advantage in chairs? v. If each country has 10 workers who can…
A: Absolute advantage is the ability to produce a good using fewer inputs than another producer, while…
Q: Suppose that Cuba and Montserrat, two Carribian island economies start trading with each other.…
A: Cuba doesn't have absolute advantage in either mangoes or sugarcane as unit labor requirements are…
Q: Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor…
A: The economics as a study is used to focus on the idea that the societies have a limit to the amount…
Q: With a given amount of labor and other resources, producers in the nation of Germany can produce…
A: Opportunity cost of producing sedans in germany=SUV sacrificedSedan producedOpportunity cost of…
Q: In this assignment, you will demonstrate your ability to draw a simple production possibilities…
A: From this data, we understand that the nation has 12 units of labor, which can be used to produce…
Q: Suppose an economy uses two resouces (labor and capital) to produce two goods (wheat and cloth).…
A: We know, that their is a scarcity of resources in the economy. Thus, it is important to use all the…
Q: There are 100 workers in Pakistan, and each worker can produce either 10 shirts or 2 hats. There are…
A: The production-possibility curve in economics is a model that measures production efficiency based…
Q: 2- Provide a construction of the production possibilities frontier for each country. table of the…
A: The PPF indicates the highest possible combination of two goods or services that the economy can…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Comparative advantage depends on opportunity cost, which is the decrease in production of one good…
Q: When a country has a comparative advantage in the production of a good, it means that it can produce…
A: Answer -"Thank you for submitting the question.But, we are authorized to solve one question at a…
Assume that Germany has 1200 units of labor available and it can produce two goods: apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. France has a labor force of 800. France’s unit labor requirement in apple production is 5, while in banana production it is 1.
A) Show on the
B) How many units of apples and bananas will be produced in the world after trade?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- Suppose that the United States limits the amount of steel that can be imported from other countries. Using a PPF that puts units of steel on the horizontal axis and units of another good, such as food, on the vertical axis, explain how such a steel import quota will affect production of food and steel in the United States and alter our consumption possibilities. Will the quota make the United States better off as a whole? If not, will it make anyone in the United States better off? Explain. For 19.21, think of the PPF as that of steel produced in the United States and food produced in the United States (and not as total steel available for use in the United States)The figure below depicts the production possibilities curve (PPC) of a country. It also depicts the consumption possibilities curve (CPC) when the country is engaged in trade with one other country. Point C is this country's consumption when that trade occurs. Quantity of 350 good y 300 250 200 150 100 50 0 0 20 40 19 C 60 80 100 120 Quantity of good x Calculate how much this country trades with the other country in good y when the two countries engage in free trade. Enter a whole number only. Enter a positive number if this country exports good y, and a negative number if it imports it. Enter O if the answer cannot be obtained with the information given. Since this is a graphical question, approximate answers (within 20 of the exact answer) are accepted. Hint: consider how much the country produces and consumes this good.Country X can produce 1,000 units of food and 2,000 units of clothes. Country Y can produce 1,000 units of food and 1,000 units of clothes. In order to maximize trade according to the principles of comparative advantage, country X should produce food and import clothes from country Y. country Y should produce food and import clothes from country X. country X and Y should produce both food and clothes to meet their own needs. country Y should produce both food and clothes, and import additional clothes from country X.
- In the no specialization-no trade case, country X produces and consumes 60 units of good A and 10 units of good B. Country Y produces and consumes 20 units of good A and 20 units of good B. If the two countries specialize and trade, how many more units of good B will country X consume?In Country T, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of rice. In Country Y, it takes 40 resources to produce 1 ton of cocoa and 20 resources to produce 1 ton of rice. Country T has a comparative advantage over Country Y in cocoa. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion stems from which of these inaccurate assumptions? Multiple Choice We have assumed constant returns to scale. We have assumed the prices of resources and exchange rates in the two countries are dynamic. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country. We have assumed that agrarian nations do not specialize in producing particular products. We have assumed diminishing returns to specialization.Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in bananas production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in bananas production it is 1. e) Show that how both Home and Foreign countries gain from trade. use PPF graph.
- To produce 1 unit of cotton country X uses 25 units of labor and country Y uses 16 units of labor. To produce 1 unit of wheat country X uses 12 units of labor and country Y uses 9 units of labor. Which country has the comparative advantage in wheat production? Why?On the same graph, draw two PPFs: one for Arizona and one for North Dakota. Assume Arizona can produce 80 bales of hay or 20 pounds of sunflowers. North Dakota can produce 30 bales of hay or 120 pounds of sunflowers. For both states, points in between these limits are possible. Show how the total production of hay and sunflowers is greater with specialization than with self-sufficiency. Assume that the states trade 20 bales of hay for 30 pounds of sunflowers. Demonstrate the gains from trade with points on your graph. 1. Explain the opportunity costs of producing 1 bale of hay and 1 pound of sunflowers for each state. 2. Draw your own PPF graph on a piece of paper. 3. Clearly label all axes and lines. Include all relevant information.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…
- Suppose there are two states that do not trade: Iowa and Nebraska. Each state produces the same two goods: corn and wheat. For Iowa the opportunity cost of producing 1 bushel of wheat is 3 bushels of corn. For Nebraska the opportunity cost of producing 1 bushel of corn is 3 bushels of wheat. At present, Iowa produces 20 million bushels of wheat and 120 million bushels of corn, while Nebraska produces 20 million bushels of corn and 120 million bushels of wheat. a. If each state specialized in their respective comparative advantage: Iowa would produce million bushels of corn and million bushels of wheat. Nebraska would produce million bushels of wheat and million bushels of corn. Now assume Nebraska trades 120 million bushels of wheat for 120 million bushels of corn. With specialization and this trade, Nebraska will end up with million bushels of corn and million bushels of wheat, while Iowa will end up with million bushels of corn and million bushels of wheat. b.…We are supposed to create a PPF with manufactured goods on the y axis and agricultural goods on the x axis. The question I'm having trouble with is: Congress is currently considering a new immigration policy that would allow people with the entrepreneurial skills and the money to start new businesses permission to emigrate to the U.S. if they start a business in this country that employs at least 5 U.S. workers. Show how you would represent the impact of this policy on the U.S. Explain briefly why you believe your picture changes in the way you illustrated.Suppose that country A using one unit of labor can produce 80 pounds of apples or 20 pounds of oranges, while country B using the same unit of labor can produce 40 pounds of apples or 15 pounds of oranges. This shows that: A) B has a comparative advantage in the production of apples. B) If A and B trade, A should specialize in the production of oranges. C) B has a comparative advantage in the production of oranges.