Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 26.2, Problem 1QQ
To determine
Production possibility frontier and opportunity cost .
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Q11
International trade permits a country to...
a.
Consume beyond its production possibilities boundary.
b.
Produce and consume beyond its production possibilities boundary.
c.
Shift its production possibilities boundary outward.
d.
Increase its absolute advantage for its imported goods.
e.
Expand its production possibilities while holding constant its consumption possibilities.
In the specific model with two consumption goods and labour (mobile) and land and capital (specific factors), in Home in the market equilibrium with free international trade of goods (compared to autarky).Which statements are correct?
1.the economy does not achieve a Pareto improvement.
2.the profit of the capital owners increases.
3.a good that is exported cannot have a higher price.
4.consumption is strictly higher.
5.the price for land cannot be lower.
6.workers will be better off if they consumption demand is sufficiently biased toward imported goods.
7.the real wage will be higher
QUESTION 10
These are some points on the production possibilities frontier for France written in the form (Cheese, Perfume)
A. (24, 0); B. (15, 4.5); C. (0, 12)
What happens to the opportunity cost of one unit of perfume as France moves from point A to B and from B to C on the PPF?
A. The opportunity cost of perfume remains the same
OB. The opportunity cost of perfume increases
OC. The opportunity cost of perfume decreases
OD. The opportunity cost of perfume remains the same from A to B and increases from B to C
Chapter 26 Solutions
Microeconomics
Ch. 26.2 - Prob. 1QQCh. 26.2 - Prob. 2QQCh. 26.2 - Prob. 3QQCh. 26.2 - Prob. 4QQCh. 26 - Prob. 1DQCh. 26 - Prob. 2DQCh. 26 - Prob. 3DQCh. 26 - Prob. 4DQCh. 26 - Prob. 5DQCh. 26 - Prob. 6DQ
Ch. 26 - Prob. 7DQCh. 26 - Prob. 8DQCh. 26 - Prob. 9DQCh. 26 - Prob. 10DQCh. 26 - Prob. 11DQCh. 26 - Prob. 12DQCh. 26 - Prob. 13DQCh. 26 - Prob. 14DQCh. 26 - Prob. 1RQCh. 26 - Prob. 2RQCh. 26 - Prob. 3RQCh. 26 - Prob. 4RQCh. 26 - Prob. 5RQCh. 26 - Prob. 6RQCh. 26 - Prob. 7RQCh. 26 - Prob. 8RQCh. 26 - Prob. 9RQCh. 26 - Prob. 10RQCh. 26 - Prob. 11RQCh. 26 - Prob. 12RQCh. 26 - Prob. 13RQCh. 26 - Prob. 1PCh. 26 - Prob. 2PCh. 26 - Prob. 3PCh. 26 - Prob. 4P
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