Suppose, the people in country X consumes good A, good B, and good C. In 2020, 17 units of good A was produced in the country and its price was taka 10 per unit. Similarly, 6 units of good B was produced in the country and its price was taka 10 per unit. Country X does not produce good C and the entire consumption amount (5 units) was imported from country Y for taka 15 per units. Country X also produced 20 units of good D but exported the entire production to country Y for taka 10 per unit. Given the information above, calculate the following: Total consumption expenditure (C) in country X in 2020: Net export (NX) in country X in 2020: The GDP of country X in 2020:

Suppose, the people in country X consumes good A, good B, and good C. In 2020, 17 units of good A was produced in the country and its price was taka 10 per unit. Similarly, 6 units of good B was produced in the country and its price was taka 10 per unit. Country X does not produce good C and the entire consumption amount (5 units) was imported from country Y for taka 15 per units. Country X also produced 20 units of good D but exported the entire production to country Y for taka 10 per unit. Given the information above, calculate the following: Total consumption expenditure (C) in country X in 2020: Net export (NX) in country X in 2020: The GDP of country X in 2020:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Country X and Country Y are neighbours. Both Country X and Country Y can produce two goods: food and clothing. In one week, Country X can produce 4,400 clothing units or 2,200 food units, or a mix of the two. In one week, Country Y can produce 5,000 clothing units or 2,000 food units, or a mix of the two. For both Country X and Country Y, their individual trade-offs between clothing units and food units are constant, regardless of how they allocate their time. Currently, Country X produces 2,400 clothing units and 1,000 food units per week while Country Y produces 2,500 clothing units and 1,000 food units per week. a. How is absolute advantage different from comparative advantage? b. Which country has the absolute advantage in food production? Which country has the absolute advantage in clothing production? Briefly explain.
Tina can produce any of the following combinations of goods X and Y: (a)100X and 0Y; (b) 50X and 25Y, and (c) 0X and 50Y. David can produce any of the following combinations of goods X and Y: (a) 50X and 0Y, (b) 25X and 40Y, and (c) 0X and 80Y. Who has a comparative advantage is in the production of good X? Of good Y? Explain your answer.
A) Consider the Island of Uba located off the shores of South Florida. The economy of Uba produces only two goods: sugar cane (S) and consumption goods and services (CS). In the late 1950s a new revolutionary announced a policy that required all Uba’s medical doctors, engineers, teachers and research scientists to allocate half their time to working in the cane fields. Draw the PPF (Production Possibilities Frontier) for Uba (Sugar cane on the x-axis, consumption goods and services on the y-axis). Indicate where the economy of Uba was located as a result of the new revolutionary government’s policy on the diagram and explain your results. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
e) Suppose a tariff allowed an industry to create 200,000 jobs paying an average of $22,500 per year. Before the tariff consumers bought 3 billion units (60% imported) at a price of $30. After the tariff they bought 2.75 billion units (none imported) at a price of $36. How much did total consumer spending on the good increase and how much per new job?
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3. Gains from trade Suppose there exist two imaginary countries, Glacier and Everglades. Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. The following table shows the amount of shorts or almonds that can be produced by one hour of labor. Country Glacier Everglades Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) 8 16 5 20 Suppose that initially Glacier uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Glacier produces 8 million pairs of shorts and 48 million pounds of almonds, and Everglades produces 15 million pairs of shorts and 20 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two…
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Sam can brew 5 gallons of root beer in an hour or he can make 4 pizzas in an hour. Ben can brew 7 gallons of root beer in an hour or he can make 5 pizzas in an hour. Who has an absolute advantage in making pizza? [ Select ] ["Ben", "Sam"] Who has a comparative advantage in making pizza? [ Select ] ["Sam", "Ben"]
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Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Euphoria 5 20 Contente 8 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Euphoria uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Euphoria produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces. Euphoria's…
Consider two neighboring island countries called Contente and Dolorium. They each have 4 million labor hours available per month that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Jeans Rye Country (Pairs per hour of labor) (Bushels per hour of labor) Contente 8 16 Dolorium 5. 20 Initially, suppose Contente uses 1 million hours of labor per month to produce jeans and 3 million hours per month to produce rye, while Dolorium uses 3 million hours of labor per month to produce jeans and 1 million hours per month to produce rye. Consequently, Contente produces 8 million pairs of jeans and 48 million bushels of rye, and Dolorium produces 15 million pairs of jeans and 20 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.
I need help with questions 9 and 10. For question 9, since the x and y value are the same, I dont know how to identify in what type of production Pam has a comparative advantage in. For question 10, I do not understand how to calculate the combined output according to each person's specialization.