Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 4PA
Sub part (a):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (b):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (c):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Sub part (d):
To determine
Production possibility frontierof quantity of car washed and quantity of lawns mowed.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Barbara and Antoni each work 8 hours a day producing lemonade and pizza. In eight
hours, Antoni can produce 400 pints of lemonade or 200 pizzas. In the same amount
of time, Barbara can produce 450 pints of lemonade or 300 pizzas. Currently, Antoni
decides to produce 200 pints of lemonade and 100 pizzas, and Barbara decides to
produce 180 units of each good.
Draw the production possibilities frontiers for Barbara and Antoni, with pizza on the
x-axis. Include current production points.
In your own words, explain absolute advantage. Who has absolute advantage in
lemonade production? In pizza production?
In your own words, explain comparative advantage.
Define opportunity cost and provide an example of an opportunity cost you face in
your own life.
Find Barbara's and Antoni's opportunity cost of producing pizza in terms of
lemonade. Who has a comparative advantage?
, Find Barbara's and Antoni's opportunity cost of producing lemonade in terms of
pizza. Who has a comparative advantage?
For…
Suppose that Paulie and Vinny each can produce ice cream or t-shirts. The table shows the quantity of cach good that Paulic
and Vinny cach can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round
all answers to two decimal places.
Ice cream (cups)
T-shirts (quantity)
Paulie
3.00
18.00
Vinny
10.00
13.00
a. What is Paulie's opportunity cost of producing a cup of
ice cream?
Paulic's opportunity cost:
t- shirts
b. What is Vinny's opportunity cost of producing a t-shirt?
Vinny's opportunity cost:
cups of ice cream
c. Paulie has a comparative advantage in
and Vinny has a comparative advantage in
Please select the economic term that is best described by each statement.
People have limited resources.
scarcity
tradeoffs
entrepreneurship
recession
margins
business cycle
Everything you do requires giving up something (time, money, etc.).
recession
tradeoffs
hudtin
Huey can wash 2 cars or mow 2 lawns in one hour. Dewey can wash 2 cars or mow 4 lawns in one hour. Louie can wash 4 cars or mow 2 lawns in one hour.
Suppose they each work 8 hours in one day. Identify the total amount of each good produced by all three people assuming they each work the given combinations of hours. Enter whole numbers.
Scenario
Cars Washed
Lawns Mowed
Each person works 8 hours washing cars and 0 hours mowing lawns
Each person works 0 hours washing cars and 8 hours mowing lawns
1 worker mows lawns (the best one) and the other 2 wash cars
2 workers mow lawns and the other worker washes cars
Chapter 2 Solutions
Principles of Microeconomics (MindTap Course List)
Knowledge Booster
Similar questions
- Suppose that Cassie can produce 10 pounds of tuna per hour or 20 pounds of apple per hour, and Samantha can produce 20 pounds of tuna per hour or 10 pounds of apples per hour. Cassie and Samantha both want 80 pounds of tuna and 80 pounds of apple per day. a. How many hours must Cassie and Samantha work per day if they don't help each other? b. Suppose they decide to work together. Now how many hours each day do they have to work?What is the economic explanation for the reduction in hours?arrow_forwardPaul, Noel, and Sandi work in a bakery where they make pies and cakes. In one day, Paul can make 5 pies or 5 cakes or any combination of these two goods that lie on the same line containing these two production points. Noel can make 30 pies or 10 cakes or any combination of these two goods that lie on the same line containing these two production points. Sandi can make 12 pies or 6 cakes or any combination of these two goods that lie on the same line containing these two production points. Assume that the production possibility frontier (PPF) of each person is a straight line. What are the opportunity costs of producing 1 pie in terms of the number of cakes for Paul, Noel, and Sandi? a. The opportunity cost of producing 1 pie for Paul is 1 cake; for Noel is one third of a cake; for Sandi is one half of a cake. b. The opportunity cost of producing 1 pie for Paul is 1 cake; for Noel is three cakes; for Sandi is one half of a cake. c. The opportunity cost of…arrow_forwardDiscuss the concept of Economic Goods.arrow_forward
- Country X and Country Y are neighbours. Both Country X and Country Y can produce two goods: food and clothing. In one week, Country X can produce 4,400 clothing units or 2,200 food units, or a mix of the two. In one week, Country Y can produce 5,000 clothing units or 2,000 food units, or a mix of the two. For both Country X and Country Y, their individual trade-offs between clothing units and food units are constant, regardless of how they allocate their time. Currently, Country X produces 2,400 clothing units and 1,000 food units per week while Country Y produces 2,500 clothing units and 1,000 food units per week. a. How is absolute advantage different from comparative advantage? b. Which country has the absolute advantage in food production? Which country has the absolute advantage in clothing production? Briefly explain.arrow_forwardThe productive capability of an economy is such that to produce 5 units of military good it takes 2 workers to be employed while 10 units of consumer goods require 3 workers. Resources are limited in such a way that only 75 units of military good can be produced when all resources are employed. a) How much workers are in the economy? b) What is the maximum amount of consumer goods that can be produced?arrow_forwardSuppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. Why shouldn't the nation produce 1 gun and 2 butters?arrow_forward
- 2) Ben and Jerry make two types of ice cream: Chubby Hubby and Chunky Monkey. For each hour that Ben and Jerry work, they can make either 6 quarts of Chubby Hubby or 3 quarts of Chunky Monkey. Ben and Jerry work 8 hours each day. a. If they only make Chunky Monkey, how much can they produce? b. If they only make Chubby Hubby, how much can they produce? c. What is the situation if they produce 12 Chunky Monkeys and 16 Chubby Hubbys? d. What would happen if someone asked for 18 Chunky Monkey and 18 Chubby Hubby?arrow_forwardAn economy consists of three workers: Larry, Moe, and Curly. Each works ten hours a day and can produce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash one car; Moe can either mow one lawn or wash two cars; and Curly can either mow two lawns or wash one car. Calculate how much of each service is produced under the following circumstances, which we label A, B, C, and D: All three spend a their time mowing lawns (A) All three spend all their time washing cars (B) All three spend half their time on each activity (C) Larry spends half his time on each activity, while Moe only washes cars and Curly only mows lawns (D) Sketch a production possibilities frontier for points A, B, C, and D and explain why the production possibilities frontier has the shape it does. Are any of the allocations calculated in part (a) inefficient? Explain.arrow_forwarda) Can you identify and explain your family’s interaction in the market for factors of production and your family’s interaction in the market for goods and services. b) Economy can be represented by economic models. One of the models we use to understand economy is a “Circular Flow Diagram”. Sketch a Circular flow model and explain the flow of money and flow of goods and services and factors of production caused by the following activities. i. Kaleem pays a shopkeeper Rs.150 for a liter of milk. ii. Mustaqeem while working at a fast-food restaurant earns Rs.500 per hour. iii. Sana spends Rs.500 on a haircut. iv. Mustafa receives Rs.200,000 from his 10 percent ownership of Salman Chemicals Ltd.arrow_forward
- Huey can wash 6 cars or mow 3 lawns in one hour. Dewey can wash 3 cars or mow 3 lawns in one hour. Louie can wash 3 cars or mow 6 lawns in one hour. They each work 8 hours per day. If two of them wash cars and one mows lawns then at most they can wash 1 I cars and mow lawns. Enter whole numbers.arrow_forwardIn an eight-hour day, Andy can produce either 8 loaves of bread or 24 kilograms of butter. In an eight-hour day, Rolfe can produce either 8 loaves of bread or 8 kilograms of butter. At what price will trade happen?arrow_forwardViktor is a lawyer who loves filing legal briefs and motions. His goal is to get as many legal briefs and motions filed as possible. Viktor has a colleague, Mr. Bean, who can also write briefs and motions. The number of legal briefs and motions each can write in one day is shown in the table below. a. Fill in the rest of the table with the opportunity cost of legal briefs and motions written for each person. Be sure to include the units. b. If the two colleagues decide to specialize, who will write legal briefs and who will write legal motions? c. What is the range of legal briefs exchanged for one legal motion in order to make the terms of trade beneficial (better than not trading) for both colleagues? Maximum Legal Briefs Maximum Legal Motions Opportunity Cost of 1 Legal Brief Opportunity Cost of 1 Legal Motion Viktor 2 3 Mr. Bean 4 3arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning