What is the opportunity cost of producing cloth in zambia

Assignment Help Microeconomics
Reference no: EM13102890

1. BANK Z (@ 10% RR) ASSETS LIABILITIES RR: K200,000 Deposits : K2,000,000 ER : K1,800,000 You are given the above Balance sheet for Bank Z as at 28th August, 2009. Answer the following questions; Assets: RR-K200,000;ER K1,800,000 Liabilities: Deposits: K2,000,000

i) Show how the Balance Sheet for Bank Z would look like after it loans out its Money to Mr. Chansa.

ii) Suppose Mr. Chansa Deposit his Money into Bank-B, How would the T- Balance sheet look like for Bank- B?

iii) If Mr. Mwanza approaches Bank- B for a loan, how much would he receive?

iv) After receiving a loan, Mr. Mwanza deposits his money into Bank-

C. Show how its Balance Sheet would look like after receiving deposits.

2. You are given a classical (labour theory of value) world with two countries, Zambia and Tanzania involved in the production of maize and cloth. Oil output (Barrels/labour-hour) Cloth output (Yards/labour-hour) Zambia 6 4 Tanzania 1 3 Answer the following questions:

a. State the commodity in which each country has absolute advantage.

b. Identify the commodity of comparative advantage for each country. Justify your answer

c. Indicate the gains to Zambia and Tanzania if the two countries exchanged 6 barrels of oil for 6 yards of cloth.

d. After the two countries specialize in their commodities of comparative advantage, show how the two countries total production will change.

e. What is the opportunity cost of producing cloth in Zambia?

Reference no: EM13102890

Questions Cloud

What is the elongation : Two round rods, one steel and the other copper, are joined end to end. Each rod is 0.795m long and 1.85cm in diameter. The combination is subjected to a tensile force with magnitude 3950N.
At what frequehcy would you expect resonant behavior : A mass of 0.5 kg is suspended from a spring, which stretches by 8 cm. The support from which the spring is suspended is set into sinusoidal motion. At what frequehcy would you expect resonant behavior?
What frequency should the tip be tapped : With what frequency should the tip be tapped to make the strip oscillate with maximum amplitude?
What is the damping parameter : A panicular spring has a spring constant of 86 N/m and a mass of 0.548 kg at its end. When the spring is driven in a viscous medium, the resonant motion occurs at an angular frequency of 12.2 rad/s.
What is the opportunity cost of producing cloth in zambia : State the commodity in which each country has absolute advantage amd identify the commodity of comparative advantage for each country
Calculate the power dissipated by the damping force : Consider the driven, damped harmonic oscillaror discussed. (a) Calculate the power dissipated by the damping force. (b) Calculate the average power loss, using the fact that the average of sin2( ?t+?) over a cycle is one-half.
Find the temperature of the blob of iron : A blob of iron sinks form the surface of earth to the center. Assume the blob does not transfer any energy to its surroundings. Assume the density of earth is uniform.
How to apply three communication theories : Write down 1750 - 2100 word paper which applies three of communication theories you have studied so far to your personal and/or professional life. How was communication effective?
Does the composition of the meteor make a big difference : A meteor that falls to earth from a great distance has a speed of 11 km/s. In class we found that the temperature of an iron meteor is 290,000K. We assumed all of the energy heats the meteor and none of it is transferred to the surroundings.

Reviews

Write a Review

Microeconomics Questions & Answers

  Diseconomies of scale

Describe why some firms might suffer diseconomies of scale. Do you know any examples? Could GM be an example of diseconomies of scale?

  Average cost-minimizing activity level

Compute output, marginal cost, average cost, price, and profit at the average cost-minimizing activity level. Compute these values at the profit-maximizing activity level.

  Negative criticism arising out of unfair competition

How might a Wal-Mart representative respond to the negative criticism that might arise as the result of sighting the new facility in a community ranging from traffic congestion to anti-union sentiment to unfair competition.

  Microeconomics multiple choice questions

A country should engage in international trade when the country can give up fewer goods for imported item than is implied by the item's domestic opportunity cost of production.

  Differences between micoeconomics and maroeconomic

As an economist you have been tasked to address a meeting of a company on international professional to describe the differences between micoeconomics and maroeconomic and give real world example.

  Find total revenue

Find Total Revenue or profit

  Total profits across the market

In a short run condition in which quantity demanded equals quantity supplied in a competitive industry, with value greater than the average cost of the typical company,

  Theories of supply and demand for regulation

Environmental Protection Agency regulations tend to go by several stages of review and approval before they are implemented.

  Arc-approximation formula

Use arc-approximation formula to compute the price-elasticity of demand coefficient of the firm's product demand between the (quantity, price) points of (100, $20) and (300, $10).

  Relationship in market and aggregate supply and demand

Describe how the circular flow diagram illustrates the interaction of households, governments, and business and Describe the relationship between market and aggregate supply and demand?

  Primary deficit

Explain what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.

  Profits of monopoly in long run

Describe how a firm in a Monopoly market maximizes its profits and minimizes its losses in the short term and in the long term. Can a Monopoly make a profit in the long term?

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