Question

Two countries each produce only pork and apples. The U.S. can produce either 20 thousand pounds...

Two countries each produce only pork and apples. The U.S. can produce either 20 thousand pounds of pork or 40 thousand pounds of apples per year. Canada can produce either 25 thousand pounds of pork or 100 thousand pounds of apples per year. Each country wants to consume 7 thousand pounds of pork per year and as many pounds of apples as they can produce with the remaining resources.

In this case (with no specialization and trade) the U.S. will consume ________ pounds of apples and Canada will consume _______ pounds of apples. Round to the nearest whole number.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Suppose there are 20 thousand resources in US, resources left after producing 7 thousand units of pork is 13. 1 unit of resource is two times more productive for apples.

Production of apples in US= 13*2= 26 thousands

Now, suppose there are 25 thousand resources in Canada, resources left after producing 7 thousand units of pork is 18 thousand. 1 unit of resource is 4 times more productive for apples.

Production of apples in Canada= 18*4= 72 thousand

Blank 1- 26 thousands

Blank 2- 72 thousands

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Two countries produce coffee and blueberries. Colombia can produce either 20 thousand pounds of coffee or...
Two countries produce coffee and blueberries. Colombia can produce either 20 thousand pounds of coffee or 40 thousand pounds of blueberries per year. Nicaragua can produce either 25 thousand pounds of coffee or 100 thousand pounds of blueberries per year. Initially the two countries do not trade. Colombia produces 7 thousand pounds of coffee and 26 thousand pounds of blueberries. Nicaragua produces 7 thousand pounds of coffee and 72 thousand pounds of blueberries. Suppose the countries completely specialize and decide...
Thailand and Argentina both produce shrimp and wheat. Thailand can produce 60 thousand pounds of shrimp...
Thailand and Argentina both produce shrimp and wheat. Thailand can produce 60 thousand pounds of shrimp or 15 thousand bushels of wheat in a year. Argentina can produce 75 thousand pounds of shrimp or 25 thousand bushels of wheat in a year. Argentina’s opportunity cost of producing one bushel of wheat is equal to ______ pounds of shrimp. Thailand’s opportunity cost of producing one bushel of wheat is equal to _______ pounds of shrimp. The two countries decide to specialize...
Consider two countries' situations: Country A can produce either six automobile ror twelve movies with the...
Consider two countries' situations: Country A can produce either six automobile ror twelve movies with the same amount of resources. Country B, using the same resources, can produce either five automobiles or eight movies. Using Ricardo' Theory of Comparative Advantage, determine which country would produce automobiles, which would produce movies, and the range of relative prices within which these product would trade?
Consider two countries, A and B. Each country produces only two goods with 1,000 production units:...
Consider two countries, A and B. Each country produces only two goods with 1,000 production units: Wine and Cheese. Country A can produce 400 bottles of wine or 200 pounds of cheese or any combination of two goods. At the same time, country B can produce 1200 bottles of wine or 300 pounds of cheese or any combination of two goods. Suppose that both countries maximize their utility when they consume wine and cheese in equal proportions. 1.      a) Absolute...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only one factor of production, Labor. In Portugal, one unit of labor can produce 1 unit of wine or 1 unit of cheese. In England, one unit of labor can produce 1 unit of wine or 2 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition. 1) Fill in the...
Fill in the blank: 1) In a given amount of time John can produce either 30...
Fill in the blank: 1) In a given amount of time John can produce either 30 pounds of vegetables or 10 pounds of chicken. In the same amount of time George can produce either 25 pounds of vegetables or 5 pounds of chicken. In this simple economy if John and George decide to specialize and exchange with each other then we can expect one pound of chicken to trade for at least __?__ pounds of vegetables but not more than...
Consider a Ricardian world consisting of U.S. and Japan. Both countries produce and consume the same...
Consider a Ricardian world consisting of U.S. and Japan. Both countries produce and consume the same two goods: cars and computers. In U.S., it takes 200 hours of labor to make a car, and 50 hours of labor to make a computer. In Japan, it takes 200 hours of labor to make a car, and 100 hours of labor to make a computer. Each country has 2 billion hours of labor. a. What would the autarky equilibrium (i.e., the amount...
Consider two countries that can produce watches. Both are subject to forwardfalling supply curves and are...
Consider two countries that can produce watches. Both are subject to forwardfalling supply curves and are similar with identical curves. In this case, the pattern of international specialization and trade would be a matter of historical accident in the sense that all production will occur in one country that will export to the rest of the world. This is true or false? Why?Illustrate your answers with graphs. Thanks
The Dominican Republic and Nicaragua both produce coffee and rum. The Dominican Republic can produce 18...
The Dominican Republic and Nicaragua both produce coffee and rum. The Dominican Republic can produce 18 thousand tons of coffee per year or 9 thousand barrels of rum. Nicaragua can produce 8 thousand tons of coffee per year or 2 thousand barrels of rum. a. Suppose the Dominican Republic and Nicaragua sign a trade agreement in which each country would specialize in the production of either coffee or rum. Which country should specialize in coffee?   (Click to select)   The Dominican Republic   Nicaragua   Which...
Consider two countries: The Netherlands and Germany. - Each country can produce bicycles and cars by...
Consider two countries: The Netherlands and Germany. - Each country can produce bicycles and cars by its resources. - If Germany allocates all of its resources to car production, it can produce 16 cars and hence no bicycles. And if Germany decides to allocate all resources to produce bicycles, it can produce 8 bicycles and hence, no cars. - If the Netherlands allocates all of its resources to produce cars, it can produce 10 cars and hence no bicycles. And...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT