GroupAssignment1F10

GroupAssignment1F10 - baking bread yields 8 loaves of...

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ECO 108: Introduction to Economics Group assignment 1 Professor: Eva Carceles-Poveda 1) Ted can wax a car in 20 minutes or wash a car in 60 minutes. Tom can wax a car in 15 minutes or wash a car in 30 minutes. What is each man’s opportunity cost of washing a car? Who has a comparative advantage in washing cars? 2) Toby can produce 5 gallons of apple cider or 2.5 ounces of feta cheese per hour. Kyle can produce 3 gallons of apple cider or 1.5 ounce of feta cheese per hour. Can Toby and Kyle benefit from specialization and trade? Explain. 3) Consider a society consisting only of Helen, who allocates her time between sewing dresses and baking bread. Each hour she devotes to sewing dresses yields 4 dresses and each hour she devotes
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Unformatted text preview: baking bread yields 8 loaves of bread. If Helen works a total of 8 hours per day, graph her production possibilities frontier. 4) Susan can pick 4 pounds of coffee in an hour or gather 2 pounds of nuts. Tom can pick 2 pounds of coffee in an hour or gather 4 pounds of nuts. Each works 6 hours per day. a) What is the maximum number of pounds of coffee the two can pick in a day? b) What is the maximum number of pounds of nuts the two can gather in a day? c) Would it be possible for Susan and Tom in total gather 26 pounds of nuts and pick 20 pounds of coffee each day? If so, how much of each good should each person pick?...
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This note was uploaded on 12/01/2010 for the course ECO 108 taught by Professor Wolman during the Spring '08 term at SUNY Stony Brook.

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