Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please confirm if the answers chosen are correct in the following questions Question 3 Person 1 can allocate her 8hour day between the production of
Please confirm if the answers chosen are correct in the following questions
Question 3 Person 1 can allocate her 8hour day between the production of two goods: A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. {a} State whether 9 units of ISood B and 12 units of Good A are attainable, unattainable, efficient or inefficient. [State oil that applies. ] Select one or more: attainable El unattainable D efficient inefficient (b) Person 2, can produce 3 units of Good B or 4 units of Good A per hour (i) Who has the absolute advantage in the Person 2 produce more than Person 1 using less resources production of Good B? (ii) Who has the absolute advantage in the Neither they both produce same quantity production of Good A?(iii) Calculate the opportunity cost for Good B for Person 2. (iv) Calculate the opportunity cost for Good A for Person 1. opportunity cost for Good B for Person 2 0.75 Good A + opportunity cost for Good A for Person 1 2 Good B(v) Who has the comparative advantage in the production of Good B? (vi) Who has the comparative advantage in the production of Good A? (v) Who has the comparative advantage in Person 1 produce with lower opportunity cost the production of Good B? (vi) Who has the comparative advantage in Person 1 produce with lower opportunity cost the production of Good A?(c) A tropical storm creates a shortage of the items needed in the production of Good B. Explain how this would affect the production possibilities curve. Select one: O PPF shifts inwards O PPF shifts outwards O Move to a point inside the PPF O Move outwards on Good A axis only O Move outwards on Good B axis only O Move inwards on Good A axis only Move inwards on Good B axis onlyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started