# C who produces caps jackets d if sue and tessa

• 8

This preview shows page 6 - 8 out of 8 pages.

c.Who produces caps? Jackets?d.If Sue and Tessa specialize and trade, who will gain?31.The U.S. and France can produce wine and cheese at the following rate.Wine (bottles) and Cheese (lbs) Per DayWineCheeseU.S.10040France9030a.Who has the absolute advantage in producing Wine? Cheeseb.Who has a comparative advantage in producing wine? Cheese?c.Who specializes to produce wine? Cheese?32.Define opportunity cost. What was your opportunity cost ofcoming to class today?33.Labor dataa.What are the limitations of using the headline unemployment rate to discuss how workers aredoing?b.List four examples of individuals who would be classified as “not in the labor force.”
34.Jamie owns a bakery that he runs on his own. He works 112 hours per week and switches his timebetween baking cakes and pies. Each cake requires 4 hours of his time, while each pie requires 2 hours.Assume his labor is the only input in production.a.Illustrate Jamie’sweeklyProduction Possibility frontier below, putting cakes on the x-axis andpies on the y-axis. Label everything as appropriate.b.What is Jamie’s opportunity cost of producing one pie? Show your work.Use the diagram below to answer the following question:35.The above figure shows the market for biologists. The government decides to set a minimum wagefor biologists of \$18 per hour. After this minimum wage is in effect, unemployment equals ________workers.
e.200Short Answer: Read each question carefully and answer as directed.36.Assume the following equations for supply and demand in the market for coffee:QD= 100 – 2PQS= 50 + 3Pa.Solve for the equilibrium price in this market. Show your work.b.Solve for the equilibrium quantity in this market. Show your work.c.Use the simple competitive supply and demand model to graph and predict the impact of anincrease in the number of sellers in the coffee market (use the general model, you do not need todraw the exact equations above). Be sure to label all axes, curves, and equilibrium points. Whathas happened to the equilibrium price and quantity?
End of preview. Want to read all 8 pages?

Course Hero member to access this document

Term
Spring
Professor
Kolberg
Tags
c, b Brandi