Jack's production possibilities Production Jill's production possibilities Food Clothing (pounds) Food Clothing Production point A (pounds) 24 (pounds) (pounds) 45 and poi nt and A B 16 and 4 В 30 and 5 and 8 15 and 10 and 12 D and 15 In the table above, Jack's comparative advantage is producing and Jill's comparative advantage is producing, A) clothing; food B) clothing; clothing C) clothing and food; nothing D) food; clothing
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- Perry's Production Possibilities Frontier CC Jordan's Production Possibilities Frontier 1poems 20 Tpoems 20 18 18 16+ 16 14 + 14 12 12 10 10 8 8 6 6 4 4 4 6 7 8 novels 1 3 4 5 6 novels Refer to Figure 3-15. Suppose Perry is willing to trade 4 poems to Jordan for each novel that Jordan writes and sends to Perry. Which of the following combinations of novels and poems could Jordan then consume, assuming Jordan specializes in novel production and Perry specializes in poem production? O a. 1 novel and 14 poems O b. 2 novels and 8 poems O c. 3 novels and 6 poems O d. 4 novels and 2 poemsElif can produce 6 pies or 30 cakes in 1 hour. Ahmet can produce 10 pies or 20 cakes in 1hour A) What is the opportunity cost of producing cakes for Elif? What is the opportunitycost of producing cakes for Ahmet?B) Who has a comparative advantage in producing pies and who has a comparativeadvantage in producing cakes?C) On the PPF lines, show what Elif produces and what Ahmet produces when theyspecialize.D) Suppose that they set the exchange price as 1 Pie = 3 Cakes. If they specialize andtrade, show an exchange situation that is beneficial for both (compared to thesituation you found at part (b))?F) What is the minimum and maximum exchange price they could have determined foran exchange that will be beneficial for both of them?QUESTION 1 Pis Tim Pies Dave 10 The graphs above depict loe Cream loe Cream the amounts of ice cream and pies that Tim and Dave can make in a given weekend. Use this to answer the questions that follow. Suppose that currently Dave is producing 3 units of pies and 2 units of ice cream, while Tim is producing 5 units of pies and 3 units of ice cream. If they instead specialize based upon the principle of comparative advantage, what would be the change in the total number of pies and ice cream produced? O a. +5 pies and +3 ice cream O b. +2 pies and +1 ice cream O c. +2 pies and no change in ice cream O d. +1 pie and +2 ice cream QUESTION 2
- Nettie can produce either 8 cupcakes or 4 hamburgers. Becky can produce either 4 cupcakes or 8 hamburgers. Suppose that Nettie and Becky each specialize in the production of the good for which they have a comparative advantage and decide to trade. The terms of trade are 1 cupcake for 1 hamburger. After trade, how many hamburgers will Nettie consume if Becky consumes 4 hamburgers? How many cupcakes will Becky consume if Nettie consumes 4 cupcakes? Multiple Choice Nettie consumes 4 hamburgers. Becky consumes 4 cupcakes Nettie consumes 0 hamburgers, Becky consumes O cupcakesThe table provides information about the production possibilities of a firm that produces bed linens. Quilts (per hour) Possibility A B C Pillows (per hour) 0 8 and and and 16 12 0 Draw points that show the three possibilities defined by the table. Label them A. B. and C. Draw the firm's PPF by connecting the points. Label it. Along this PPF, the quantities of A. all goods other than pillows and quilts are increasing OB. all goods other than pillows and quilts remain constant OC. pillows and quilts are either increasing or decreasing, so there is no scarcity OD. all goods other than pillows and quilts are decreasingPaul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham The graph above shows that Paul has a comparative advantage in the production of [Select] Y and Sue has a comparative advantage in the production of [Select] cheese both goods neither good ham Paul's PPF Sue's PPF Cheese Cheese 100 60 40 30 20 80 Ham 36 90 Ham Based on the graph above, which of the following statements is true? O Paul can only benefit from trading with Sue if a tax is imposed on the goods produced by Sue. O Since Paul is so uncompetitive compared with Sue, he will be better off by not trading at all with Sue. O Even though Sue is more productive than Paul in making cither of the two goods, Paul and Sue can both still benent from trading with each other. O Since Sue is more competitive than Paul in both goods, she has nothing to gain by trading with Paul.
- . Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 t- shirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A's linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B's linear PPF. b. Write an equation in slope-intercept form for the PPF for Country A.. Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 t- shirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A's linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B's linear PPF. a. On two separate graphs draw the PPF for Country A and Country B. Measure t-shirts on the vertical axis and sneakers on the horizontal axis.. Country A and Country B are two countries that each produce t-shirts (T) and sneakers (S). From its available resources and technology Country A can produce 100 t-shirts and 0 sneakers or 0 t- shirts and 200 sneakers or any combination of t-shirts and sneakers that sits on Country A's linear PPF. From its available resources and technology Country B can produce 50 t-shirts and 0 sneaker or 0 t-shirt and 50 sneakers or any combination of t-shirts and sneakers that sits on Country B’s linear PPF. c. Write an equation in slope-intercept form for the PPF for Country B.
- Alex and Henry are completing group work for class. The input table below gives the time that it takes Henry and and Alex to complete their homework assignments in hours Time to complete Worksheets Time to complete Essays 2hours 3hours Henry 1 hour Alex 1 hour Who has the comparative advantage in Essays? O Alex O Both Henry and Alex O Henry ONeither Henry nor Alex O We cannot determine who has comparative advantagePaul's PPF Sue's PPF Cheese Cheese 100 80 60 Ham 30 Ham Based on the graph above, which of the following statements is true? The Principle of Absolute Advantage does not help us determine how trade would benefit Paul and Sue. O Sue would lose out by trading with Paul, because she is less competitive than Paul in the production of both goods. O Paul has nothing to gain from trading with Sue, since he is better in making both goods. Sue has an absolute advantage in the production of cheese.2. Comparative and absolute advantage Sam and Teresa are farmers. Each one owns a 20-acre plot of land. The following table shows the amount of corn and rye each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing corn or rye or to produce corn on some of the land and rye on the rest. Corn Rye (Bushels per acre) (Bushels per acre) Sam 40 8 Тeresa 28 7 On the following graph, use the blue line (circle symbol) to plot Sam's production possibilities frontier (PPF), and use the purple line (diamond symbol) to plot Teresa's PPF. 200 180 Sam's PPF 160 140 Teresa's PPF 120 100 80 60 40 20 100 200 300 400 500 600 700 B00 900 1000 CORN (Bushels) has an absolute advantage in the production of corn, and has an absolute advantage in the production of rye. Sam's opportunity cost of producing 1 bushel of rye is bushels of corn, whereas Teresa's opportunity cost of producing 1 bushel of rye is v opportunity cost of producing rye than Teresa, v has…