An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X axis and tobacco on the Y axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). **You can, if you'd like, assume that both workers can trade until until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes. **

An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X axis and tobacco on the Y axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). You can, if you'd like, assume that both workers can trade until until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Anation with fixed quantities of resources is able to produce any of the following combinations of carpet and carpet looms Production Possibility Frontier Yards of carpet (Millions) Carpet looms (Thousands) 43 75 60 20 45 35 30 45 15 50 50 24- These figures assume that a certain number of previously produced looms are available in the current period for producing carpet. 1.) Using the multipoint curve drawing tool, plot the six points that make up the PPF given in the table above (with carpet on the vertical axis). Properly label your curve. Carefully follow the instructions above and only draw the required object. 45 Carpet (millions) 15 30 60 75 (spuesnou) suoo| jade)
Robinson is trapped on an island and can produce Fish (F) or Coconuts (C) with his time. Let LF and Lc denote labor hours dedicated to fishing or gathering coconuts, respectively. Robinson's technological relationships for producing fish is given by: F = √√LF Robinson's technological relationships for producing coconuts is given by: C = √Lc Which of the following correctly expresses the relationship between fish and coconuts along Robinson's PPF for a single 24 hour day (assume he doesn't sleep)? F² + 4C² 2F² + 4C² = 24 = 6 4F16C 24 none of the other choices are correct
Vega and Sentra are two countries that both produce chicken and vegetables. In Vega each worker in a one-hour period can produce either 9.05 pounds of chicken or 5.76 pounds of vegetables. In Sentra each worker in a one-hour period can produce either 25.49 pounds of chicken or 8.17 pounds of vegetables. Suppose both countries have constant opportunity cost of production and decide to specialize and exchange. The country that specializes in vegetables is willing to sell 19 pounds of vegetables for at least pounds of chicken. Enter a numerical value, rounded to two decimal places.
How has COVID-19 affected a country’s ability to achieve production efficiency? Provide specific examples or describe how current production relates to an economy-wide PPF conceptually and graphically.
Q/ 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. c. Which country has a comparative advantage in food production? Which country has acomparative advantage in clothing production? Illustrate your answer using the PPC and showall the calculations. d. Should Country X and Country Y specialize and trade with one another? Why?
Assume that England and Spain can switch between producing cheese and producing bread at a constant Labor Hours Needed to Make 1 Unit of Number of Units Produced in 24 Hours Cheese Bread Cheese Bread England 2 3 12 8 Spain 3 6 8 4 Assume that England and Spain each has 24 labor hours available. If each country divides its time equally between the production of cheese and bread, then what will be the total production of Cheese and Bread? Check to see if the following combination of Chease and Bread could be produced in England. 6 units of cheese and 4 units of bread. 8 units of cheese and 3 units of bread.
Krisha can pick 4 pounds of coffee beans in an hour or gather 2 pounds of nuts. Tom can pick 2 pounds of coffee beans in an hour or gather 4 pounds of nuts. Each works 6 hours per day. Together, what is the maximum number of pounds of coffee beans the two can pick in a day? What is the maximum number of pounds of nuts the two can gather in a day? Maximum amount of coffee beans pounds per day Maximum amount of nuts pounds per day Now suppose Krisha and Tom were gathering the maximum number of pounds of nuts when they decided that they would like to begin picking 8 pounds of coffee beans per day. Who would pick the coffee beans? How many pounds of nuts would they still be able to gather? Would it be possible for Krisha and Tom in total to gather 26 pounds of nuts and pick 20 pounds of coffee beans each day? If so, how much of each good should each person pick? The combination of 30 pounds of coffee beans and 12 pounds of nuts per day is show Krisha and Tom's combined daily PPC.
Assume that quantities do not need to be integers. That is, it is feasible for Andreas to knit 37.25 pairs of mittens. It takes Andreas 3 hours to knit a pair of mittens and 6 hours to knit a scarf. Assuming efficient production, what is the opportunity cost, in terms of pairs of mittens, of Andreas choosing to knit one extra scarf? Enter a number (and only a number, no units) rounded to two decimal places. If your answer is 1.275, enter 1.28.
To answer this question, use must use the information below: How much more chocolate does John gain from specialization and trade? Production and Consumption Both Todd and John will have 12 hours to produce. Todd will use 8 hours to produce 80 pounds of chocolate and 4 hours to produce 80 pounds of coffee. John will use 4 hours to produce 80 pounds of chocolate, and 8 hours to produce 80 pounds of coffee. Specialization and Trade Todd's production without Trade Using 4 hours as a the time element - Todd can produce 40 pounds of chocolate and 80 pounds of coffee. opportunity cost for chocolate is 80/40 = 2 opportunity cost for coffee is 40/80 = 1/2 Johns's production without Trade Using 4 hours as the time element - John can produce 80 pounds of chocolate and 40 pounds of coffee. opportunity cost for chocolate 40/80 = 1/2 opportunity cost for coffee is 80/20 = 2 Without Trade Totals - John and Todd produce 120 pounds of chocolate, and 120 pounds of coffee. Who Should Produce and Trade?…
If country A uses all of its resources efficiently, it can produce a maximum of 100 units of good X. If country A uses all of its resources efficiently, it can produce a maximum of 150 units of good Y. If country B uses all of its resources efficiently, it can produce a maximum of 75 units of good X. If country B uses all of its resources efficiently, it can produce a maximum of 125 units of good Y. Both countries have (linear) straight line PPFs. What is the opportunity cost of producing 50 units of Y in country B? (hint: your answer should be measured in the positive number of units of good X that must be given up - round your answer to two decimal places only if necessary)
If country A uses all of its resources efficiently, it can produce a maximum of 100 units of good X. If country A uses all of its resources efficiently, it can produce a maximum of 150 units of good Y. If country B uses all of its resources efficiently, it can produce a maximum of 75 units of good X. If country B uses all of its resources efficiently, it can produce a maximum of 125 units of good Y. Both countries have (linear) straight line PPFs. If these countries were going to trade after specializing in their respective comparative advantages, which of the following trades would be considered to be mutually beneficial where BOTH countries gain from trade (and are strictly better off than in autarky, the situation where they both self-reliant and do not trade with one another)? trade at a rate of 3X for 4Y trade at a rate of 2X for 3Y trade at a rate of 5X for 8Y trade at a rate of 3X for 5Y
If country A uses all of its resources efficiently, it can produce a maximum of 100 units of good X. If country A uses all of its resources efficiently, it can produce a maximum of 150 units of good Y. If country B uses all of its resources efficiently, it can produce a maximum of 75 units of good X. If country B uses all of its resources efficiently, it can produce a maximum of 125 units of good Y. Both countries have (linear) straight line PPFs. Which of the following must be true? check all that apply A and B have the same access to resources (inputs) A can produce more X than B with the same resources A can produce more Y than B could with the same resources B can produce Y at a lower opportunity cost than A