Duckistan Production Possibilities A Civilian Goods Military Goods 20 B 18 C D E 14 8 0 0 1 2 3 4 Herbania Production Possibilities A B C D E Civilian Goods 40 36 26 14 0 Military Goods 0 1 2 3 4 Refer to the tables. Suppose that the amount and quality of resources are the same in both countries. We can conclude that Multiple Choice Herbania is technologically superior to Duckistan in producing civilian goods. Herbania is technologically better than Duckistan at producing both military goods and civilian goods. Duckistan is technologically better than Herbania at producing military goods.
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We see that when Duckistan produces 0 military goods, it produces 20 civilian goods. When it produces 1 military good, it produces 18 civilian goods, and so on. Show more…
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Mauya M.
2. Suppose that the ROW has the same technology (10 labor and 5 capital to produce a ton of steel, 2 labor and 4 capital to produce a ton of wheat) and the same amount of labor (240) but 360 capital. a. The ROW capital constraint is Q + Qw = 360 or Q = -1.25Q. b. Graph the labor constraint, the home capital constraint, and the ROW capital constraint. c. The ROW production bundle of steel and wheat that fully employs both factors is Bo tons of steel and g0 tons of wheat. Compare the relative production of steel to wheat across countries. The relative supply of steel to wheat for the ROW is higher than for home. d. Compare the relative abundance of labor to capital across countries. Which country is relatively abundant in labor to capital? Compare the relative intensity of factor use across goods. Which good makes relatively intensive use of labor to capital? What does each country import and export? Home imports wheat and Home exports steel. ROW imports wheat and ROW exports neither.
Supreeta N.
Suppose Mexico and Nicaragua produce only chicken and vegetables. Mexico can produce 6 tons of chicken or 12 tons of vegetables each year. Nicaragua can produce 7 tons of chicken or 28 tons of vegetables each year. a. In the diagram above, draw the production possibilities frontier for each country. Instructions: Use the tools provided (PPFa and PPFb) and plot only the endpoints such that the first point touches the vertical axis and the last point touches the horizontal axis. b. Both countries want to consume 3 tons of chicken each year and as many vegetables as they can produce along with the 3 tons of chicken. Find this point on each production possibilities frontier. Instructions: Use the tools provided (Pt 1) to plot the indicated points for each country. c. Suppose the countries specialize. Mexico will produce chicken. d. Once they specialize, suppose they work out a trade of 3 tons of chicken in exchange for 8 tons of vegetables. Find the post-trade consumption point for each country. Instructions: Use the tools provided (Pt 2) to plot the indicated points for each country. e. After trade, Mexico can consume more tons of vegetables. After trade, Nicaragua can consume more tons of vegetables.
Crystal W.
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