12. Plot the points on the PPC given the following information. Cars should be on the vertical axisand lamps should be on the horizontal axis. Label the points on the graph, and also label point Jas unattainable, and point K as inefficient.A20,000CarsMotorcycles 0B18,5001,125с15,0002,250D10,0003,375Which points are considered points of specialization?.Which points are attainable?Which points are efficient and attainable?E04,50013. Assume that a country wants to increase production or push the PPC outwards. Give an exampleof how this could happen.

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12. Plot the points on the PPC given the following Information. Cars should be on the vertical axis and lamps should be on the horizontal axis. Label the points on the graph, and also label point J as unattainable, and point K as inefficient. Cars Motorcycles A 20,000 O B 18,500 1,125 I с 15,000 2,250 D 10,000 3,375 Which points are considered points of specialization?, Which points are attainable? Which points are efficient and attainable? E 0 4,500

12. Plot the points on the PPC given the following Information. Cars should be on the vertical axis and lamps should be on the horizontal axis. Label the points on the graph, and also label point J as unattainable, and point K as inefficient. Cars Motorcycles A 20,000 O B 18,500 1,125 I с 15,000 2,250 D 10,000 3,375 Which points are considered points of specialization?, Which points are attainable? Which points are efficient and attainable? E 0 4,500

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 6PA

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1. Draw a production possibility curve (PPC) with the number of pounds of rice that can be produced in one hour on the vertical axis and the number of shoe that can be produced in one hour on the horizontal axis using the information in the table below. The following table reveals the production possibilities for the company: Possibility Rice Shoe А 50 В 45 1 37 2 D 27 3 E 15 4 F 2. On the PPC graph in question 1: (a) explain why the production combinations located on the PPC are superior to the combinations that are located inside the PPC (b) explain why the production combinations past the PPC are not attainable during a current one-hour period but could be attainable in a future one-hour period. 3. On a separate graph demonstrate the marginal cost of shoe production per hour. 4. What is allocative efficiency and how does it relate to the PPC? Explain and represent this phenomenon on a graph on the market for shoe.
96 FL If Honduras and Guatemala each specialize in producing the good in which they have a comparative advantage and then trade with one another original PPF. O both countries would end up on a point to the right of their O both countries would end up at a point to the left of their one country would remain on its original PPF, while the other country would end up on a point to the right of its O both countries would end up on a different point on their Unit 7- Chapter 1...xlsx Unit 7- Chapter 1..xlsx O Topic 2 (2).docx O Topic 2 (1).docx 11:09 PM 73°F SUI prt sc delete f12 pus backspace -> unu Bock enter pause T shift alt ctrl
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) 16 Wine (Bottles) Cheese (Pounds) 12 8. 4. 25 20 15 2 3 3 4 10 4 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. O B. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese. Then, assume instead that France and…
QUESTION 7 65+ 60+ 55 50 45 40 282828 35+ 30 25 20 15 10 5+ Cay China's PPF + 5 10 15 20 25 30 35 40 45 50 55 Computer OA. 40 cars and 20 computers B. 40 cars and zero computers C. 20 cars and 20 computers 个 Cor 65+ 60- 55 50+ 45+ Refer to figures above. Suppose that China and Japan fully specialize in the goods in which they have a comparative advantage. Trade is then initiated between the two countries and 20 units of cars are exchanged for 20 units of computers. How many units of cars and computers will China be able to consume after trade? D.40 cars and 40 computers 40- 35+ 30 25- 20 15 10- 5 Japan's PPF 5 10 15 20 25 30 35 40 45 50 55 60 Computer
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1. One German worker can produce either 5 cars or 10 tons of grain a year. One Japanese worker can produce either 4 cars or 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers. Japan well as the PPE 6 L which country has an absolute advantage in produ f) Given all the information above, which country has a comparative advantage in producing cars? Which country has a comparative advantage in producing grain? Why? g) Both countries will spend half of each country's workers produce cars and half produce grain. Complete the following table with the quantities of cars produced and consumed in each country if there is no trade. Car Produced and Consumed (million) Tons of Grain Produced and Consumed (million) Germany Japan h) If each country only produces the good in which they have a comparative advantage and then traded 300 million tons of grain for 200 million cars, will both countries be better off? Why?
Q2. The following table shows the output of textile and auto one unit of labor can produce in the U.K. and the U.S.: Textiles Autos United Kingdom 16 4 United States 12 6 Which country has an absolute advantage in textiles and which country has an absolute advantage in autos? What is the autarky price ratio of autos relative to textiles in each country? Which country has a comparative advantage in textiles and which country has a comparative advantage in autos? Which product should each country export? Suppose the United States has 150 units of labor available. Construct the production-possibilities frontier (PPF) and identify the optimal autarky equilibrium (using an indifference curve) for the United States. Suppose the international price is set at 1 auto:3 textile and the U.S. decides to completely specialize in producing the product in which it has a comparative advantage. How would the above graph change? Use the graph to show the gains from trade…
Two planets, Endor and Kamino, both produce two goods, blasters and radio devices. The below graphs show the PPF curves of each planet before specialization. Initially, each planet produces 50,000 radio devices and 5,000 blasters. In total, 100,000 radios and 10,000 blasters are produced. Which planet has a comparative advantage in producing radios and which planet has a comparative advantage in producing blasters? If each planet was to fully specialize in producing one good, how many radios in total would be produced and how many blasters in total would be produced? Suppose that the two planets trade 5,000 blasters for 90,000 radios. Graph and label the new points on each planet’s PPF using the graphs above. What is the outcome of specialization and trade for each planet?
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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