Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(1) Maria can read 20page of economics in an hour. She can also read 50page of sociology in an hour. She spends 5 hours per

(1) Maria can read 20page of economics in an hour. She can also read 50page of sociology in an hour. She spends 5 hours per day studying.

(A) Draw Maria's production possibilities frontier for reading economics and sociology.

(B) What is Maria's opportunity cost of reading 100pages of sociology?

(2) American and Japanese workers can each produce 4 cars a year. An American worker can produce 10 tons of grain a year, whereas a Japanese worker can produce 5 tons of grain a year. To keep things simple, assume that each country has 100 million workers.

(A) For this situation, construct a table analogous to the table in Figure 1. (B) Graph the production possibilities frontiers for the American and Japanese economies. (C) For the United States, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of grain? Put this information in a table analogous to Table 1. (D) Which country has an absolute advantage in producing cars? In producing grain? (E) Which country has a comparative advantage in producing cars? In producing grain? (F) Without trade, half of each country's workers pro- duce cars and half produce grain. What quantities of cars and grain does each country produce? (G) Starting from a position without trade, give an example in which trade makes each country better off.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Math For Business And Finance An Algebraic Approach

Authors: Jeffrey Slater, Sharon Wittry

1st Edition

0077639626, 9780077639624

More Books

Students also viewed these Economics questions

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago

Question

What is the purpose of a retaining wall, and how is it designed?

Answered: 1 week ago

Question

How do you determine the load-bearing capacity of a soil?

Answered: 1 week ago

Question

what is Edward Lemieux effect / Anomeric effect ?

Answered: 1 week ago

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago