Econ 1014 Hw 3 - Econ 1014 Principles of Microeconomics...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Econ 1014 Principles of Microeconomics Summer 2012 i Homework 3 Due on Jul 11 in Class Note: (1) Please print out this file and circle the correct answer. (2) Staple all pages. (3) No extra credit, because no typing is needed. Multiple Choice Questions. (1 point each) 1. Suppose a gardener produces both green beans and corn in her garden. If she must give up 14 bushels of com to get 5 bushels of green beans, then her opportunity cost of l bushel of green beans is . 0.36 bushel ofcorn. H a 2.8 bushels ofcorn. ‘ —6’ r 2‘3 c. 14 bushels of corn. 1 ‘ \~ ’34:?) d. 70 bushels of com. A: . “a, r S 2. If labor in Mexico is less productive than labor in the United States in all areas of production, a. then neither nation can benefit from trade. b. then Mexico can benefit from trade but the United States carmot. c. then the United States will have a comparative advantage relative to Mexico in the production of all goods. @ then both Mexico and the United States still can benefit fiom trade. Table 3-1 Assume that Sardi and Tinaka can switch between producing corn and producing pork at a constant rate. (PPF is a straight line) - 3. Refer to Table 3-1. Which of the following combinations of corn and pork could Sardi produce in one 8-hour day? a. 6 bushels of corn and 35 pounds of pork 9 bushels of corn and 25 pounds of pork c. 15 bushels of corn and 20 pounds of pork d: 24 bushels of corn and 40 pounds of pork Table 3-5 Assume that England and Spain can switch between producing cheese and producing bread at a constant rate. - to M1 Unit of Produced in 40 Hours -_ i Econ 1014 Principles of Microeconomics Summer 2012 4. Refer to Table 3-5. The opportunity cost of 1 unit of cheese for England is 1/4 unit of bread. b. 1 hour of labor. \_ _ - fi /c. 4 units of bread. ‘ " / i“ I 'J -, . d. 4 hours of labor. Li Refer to Table 3-5. The opportunity cost of 1 unit of cheese for Spain is 1/2 unit of bread. 2 hours of labor. 1' 7 g ’ _L 2 units of bread. ‘— l/o I Z 4 hours of labor. Refer to Table 3-5. The opportunity cost of 1 unit of bread for England is 1/4 unit of cheese. _ l/4 hour of labor. I Q” 4 units of cheese. A ‘3 " . O 4 hours of labor. Refer to Table 3-5. The opportunity cost of 1 unit of bread for Spain is 1/2 unit of cheese. / ‘ 1/2 hour of labor. s .2: 2 units of cheese. .4; 8 hours of labor. Refer to Table 3-5. England has an absolute advantage in the production of cheese and Spain has an absolute advantage in the production of bread. bread and Spain has an absolute advantage in the production of cheese. both goods and Spain has an absolute advantage in the production of neither good. neither good and Spain has an absolute advantage in the production of both goods. (orrm‘ 0pr 4‘1 3 4 Refer to Table 3-5. England has a comparative advantage in the production of cheese and Spain has a comparative advantage in the production of bread. bread and Spain has a comparative advantage in the production of cheese. both goods and Spain has a comparative advantage in the production of neither good. neither good and Spain has a comparative advantage in the production of both goods. Refer to Table 3-5. England should export cheese and import bread. bread and import cheese. both goods and import neither good. neither good and import both goods. ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern