Who has the absolute advantage in doing the dishes

Assignment Help Microeconomics
Reference no: EM131025320

Practice Questions 1-

I. Multiple Choices:

The country of Myland can use its resources to produce either Oil or Fish according to the PPF in the picture below (numbers represent pounds):

1176_Figure.png

1) Assume that Myland is producing at point A. What is the opportunity cost, measured in pounds of fish, of moving to point B?

a. 200 pounds of fish.

b. 0 pounds of fish.

c. 100 pound of fish.

d. 2 pounds of fish.

2) Now assume that Myland is producing at point C. In this case, what is the opportunity cost, measured in pounds of fish, of moving to point B?

a. 200 pounds of fish.

b. 0 pounds of fish.

c. 100 pounds of fish.

d. 2 pounds of fish.

3) Which of the following statements is NOT TRUE about the employment of resources in the country of Myland?:

a. Producing at point C is inefficient.

b. Producing at either point A or B is efficient.

c. At point A, Myland is employing all of its available resources.

d. At any point on and below the PPF, Myland is employing all of its available resources.

4) What is most likely to happen if the country of Myland experiences growth in its labor force?

a. If producing at point A, it will move along the PPF to point B.

b. The PPF of this country will change.

c. If producing at point C, it will move to point B.

d. None of the above.

5) John can grow in his backyard either potatoes or salad. The opportunity cost of growing salad is constant at any quantity of potatoes and salad produced. Then we can say that the PPF of John's backyard has a:

a. Bowed in toward the origin shape.

b. Bowed out from the origin shape.

c. Linear shape (constant slope).

d. All of the above are possible.

Answer the next three questions using the following information.

You and your friend need to go to the library. You have to make some photocopies and look for some books. It takes you 5 minutes to photocopy 10 pages and 10 minutes to look for a book. It takes your friend 10 minutes to photocopy 10 pages and 12 minutes to look for a book. 

6) Which of the following is TRUE?

a. You have the absolute advantage in making photocopies and your friend in looking for books.

b. For your friend, the opportunity cost of looking for 1 book is photocopying 20 pages.

c. For you, the opportunity cost of making 10 photocopies is looking for 1 book.

d. You have the comparative advantage in making photocopies.

7) If you both specialize according to your comparative advantage:

a. You will make the photocopies and look for the books.

b. You will make photocopies and your friend will look for the books.

c. Your friend will make photocopies and look for the books.

d. You will look for the books while your friend makes photocopies.

8) Assume that you have to photocopy 60 pages each and each look for 3 books. How much time can you gain if you specialize according to the respective comparative advantages (assume that you do not help each other when done with your own task)?

a. 12 minutes.

b. 24 minutes.

c. 36 minutes.

d. There is no gain from specialization.

II. Problems:

1) Amy and Jenna are roommates. After a dinner with their friends, they need to clean their apartment and to do the dishes (unfortunately, they do not have either a dishwasher or a vacuum cleaner). They both have 2 hours available to complete their tasks. In 1 hour, Amy can either do ½ of the dishes or clean 1/3 of the house. On the other hand, in 1 hour Jenna can either do ¾ of the dishes or clean ¼ of the house.

a. Who has the absolute advantage in doing the dishes?

b. Who has the absolute advantage in cleaning the house?

c. Compute the opportunity cost of doing all the dishes for both Amy and Jenna.

d. Compute the opportunity cost of cleaning the whole house for both Amy and Jenna.

e. Who has the comparative advantage in what?

2) Jim and Tony like to grow tomatoes and onions in their backyard. In one month, Jim can grow in his backyard either 60 tomatoes and 0 onions or 0 tomatoes and 30 onions or any other combination lying on the line between these two points. In the same amount of time, Tony can grow in his backyard either 40 tomatoes and 0 onions or 0 tomatoes and 10 onions or any other combination lying on the line between these two points.

a. Assuming that there is no trade in vegetables between Jim and Tony, what is the price of 1 onion in terms of tomatoes for Jim?

b. Assuming that there is no trade in vegetables between Jim and Tony, what is the price of 1 onion in terms of tomatoes for Tony?

c. Who has the comparative advantage in the production of what?

d. If they start trading with each other, who will sell what?

e. How much will they be willing to offer/accept for any transaction in onions and tomatoes?

Reference no: EM131025320

Questions Cloud

Determine the present value of the lease payments : What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2013? (Enter your answers in whole dollars.)
How much farther will a ball travel for each mile-per-hour : How much farther will a ball travel for each mile-per-hour increase in the speed of the bat?
Principal operating departments : Use the direct method to allocate support costs to each of the two principal operating departments, Engineering and Computer Sciences. Prepare a schedule showing the support costs allocated to each department.
Prepare a lease amortization schedule for the term : Prepare a lease amortization schedule for the term of the lease. Also record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2014.
Who has the absolute advantage in doing the dishes : Amy and Jenna are roommates. After a dinner with their friends, they need to clean their apartment and to do the dishes (unfortunately, they do not have either a dishwasher or a vacuum cleaner). Who has the absolute advantage in doing the dishes
Amount of the loan taken : When you purchased your house, you took out a 30-year annual payment mortgage with an interest rate of 5.5%. The annual payment on the mortgage is $12,000. You have just made a payment & have now decided to pay the mortgage off by repaying the out..
Identify the steady state of relationship commitment : What is the initial percentage of people in committed relationships in country - Calculate the values for the end of the second year given the values of m and s, and the values
Bond nominal coupon interest rate : Field Industries outstanding bonds have a 25-year maturity and $1,000 par value. Their nominal yield to maturity is 9.25% they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest rate?
The richburn manufacturing company increased its merchandise : What were the cash disbursements for the year?$567,600.$694,900.$562,900.$242,600.

Reviews

Write a Review

Microeconomics Questions & Answers

  Who had largely replaced keynesian views

By the 1950s, the views of the Classical economists among American economists: had been largely eclipsed by Keynesian views. had largely replaced Keynesian views. were about as widely held as Keynesian views.

  Understand the particularities of capitalist exploitation

Normal 0 false false false EN-US X-NONE X-NONE Explain the value that Marx..

  Given the output function q = 4t

Given the output function Q = 4t(K^half)(L^half)  and K = 10t^2 and L = 6t^2 Find the change in output with respect to time if t = 10

  Determine the opportunity cost for 35 billion could

the ceo of bank of america brian moynihan recently stated that us taxpayer money should not be used to bail out major

  What is hardins solution to the tragedy of the commons

What is Hardin's solution to the Tragedy of the Commons - What would need to be done, according to Hardin, Elliot, and Jared Diamond, to prevent a tragedy in these 2 commons.

  Calculate the adjusted coefficient of determination

Calculate the adjusted coefficient of determination and explain its meaning - Calculate the adjusted coefficient of determination and compare.

  Government encouragement to include ethanol in gasoline

Which of the following commodities have been most directly influenced by government encouragement to include ethanol in gasoline?

  Question regarding the clothing consumption

Describe the conclusions of your analysis assuming the same tax is present in both the clothing and the food markets. Further assume that the tax revenue is returned in equal lump-sum transfers to all citizens.

  Write an expression for the number of retired people

Write an expression for the number of retired people as a function of the population that is 16 years old or older. Use y as the symbol for the population of people 16 years old or older

  Important to distinguish among fixed and variable costs

A patient visits a clinic. She incurs $10 in travel costs and has a copayment of $20. The clinic’s total charge is $60. The clinic spends $9 to bill the insurance company for the visit and uses resources worth $51 to produce the visit

  Explain price discriminate

Explain why Monopolistically Competitive firms charge different prices for their products and Oligopolies tend to all charge the same price. Explain why all businesses do not Price Discriminate.

  Definition and explanation of the gdp and cpi

Definition and explanation of the indices, e.g., GDP, CPI, and other economic calculations

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd