ECON 2030 Chapter : Feb 7 Lab

9 views2 pages

azuremammoth471

15 Mar 2019

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

France can produce more the good per worker hour than england can. Eos has the absolute advantage in producing bagels and aurora has the absolute advantage in producing cookies. Eos has the comparative advantage in producing bagels and aurora has the comparative advantage in producing cookies: suppose john and yoko can spend their days picking peaches or making cream. Y 21 63: suppose in a ten hour day yoko produces 28 cream and picks 108 peaches. On that day yoko"s level of production was: efficient, 7 hours producing cream and 3 hours picking peaches, suppose charles, a rational art patron, recently saw a painting priced at but he did not purchase it. It can be concluded with certainty that charles"s reservation price for buying the painting was less than : suppose the price of brussels sprouts increases. Everything else held constant, this will cause the quantity demanded of brussels sprouts to decrease: suppose cantaloupe is a normal good.

Related Questions

England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.

Q1.which country has the absolute advantage in the production of each good? Which country has the comparative advantage??

Q2. If England and Scotland decide to trade, which commodity will Scotland trade to England?? Explain

Q3. If a Scotland worker could produce only 1 sweater per hour, would Scotland still gain from trade? Would England still gain from trade? Explain

blushtortoise567

1. The law of comparative advantage says that:

A. whoever has an absolute advantage in producing a good also has a comparative advantage in producing that good.

B. whoever has a comparative advantage in producing a good also has an absolute advantage in producing that good

C. the individual with the lowest opportunity cost of producing a particular good should produce it

D. comparative advantage exists only when one person has an absolute advantage in the production of two goods

2. A country has an absolute advantage in the production of a good if that country:

A. can produce good using fewer resources than another country would require

B. has the lowest opportunity cost of producing the good, regardless of whether it is produced with the fewest resources

C. has the greatest opportunity cost of producing the good, regardless of whether it is produced with the fewest resources

D. has the lowest opportunity cost of producing the good and can produce it with the fewest resources

3. A production possibilities frontier can shift outward for all of the following reasons except:

A. a larger workforce

B. a decrease in the size of the labor force

C. an increase in the skills of the labor force

D. an improvement in technology

byzantiumshark504

4. Your roommate Pat decides to help with the party. The amounts of brownies and cookies which can be produced in an hour (if all resources are devoted to that good) are shown by the following table:

YOU PAT

COOKIES PER HOUR 20 5

BROWNIES PER HOUR 40 20

Where both cookies and brownies are measured in units.

a. Who has an absolute advantage in producing brownies? Cookies?

b. For you, what is the opportunity cost of producing one brownie? Of one cookie?

c. For Pat, what is the opportunity cost of producing one brownie? Of one cookie?

d. Should you and Pat specialize? Who should produce what?

e. Suppose that you have so many guests that you have to split up the party into two rooms. You throw one party and Pat throws the other. What are the terms of trade? (At what rate would you each be willing to trade?)

f. Using graphs for both you and Pat, show that trade allows each of you to

achieve a point on your consumption possibilities curve which is greater than

your production possibilities curve. Be sure to label all curves and axes.

f. What is this principle called?

ECON 2030 Chapter : Feb 7 Lab

Document Summary

Get access

Related Documents

ECON 2030 Chapter : Menu 25 Jan 17

ECON 2030 Chapter : 1-25-16 Gains From Trade Ex

ECON 2030 Chapter : Lab 1

Related Questions