Question

Suppose there are 10 million workers in Canada and that each of these workers can produce...

Suppose there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. 1) Draw the Production Possibilities Frontier (PPF) for the US, knowing that each US worker can produce either 2 cars or 28 bushels of wheat a year. There are 20 million workers in the US 2) If the US wanted to consume an equal amount of both goods, what quantity of each would it produce? Show it on the PPF. 3) How many workers would be allocated to each sector to produce the amount of cars and wheat in 2?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) the 20 million workers in teh US can produce either

40 million cars (2*20 million) or

560 million bushels of wheat (28*20 million)

Pls see PPF below. Cars on vertical axis and wheat on horizontal axis.

2) & 3) If it wants to produce equal quantity, then assume that x workers are producing cars and 20-x are producing wheat

hence, 2x = (20-x)*28

30x = 560

x = 560/30 = 18.67 million workers will produce cars

20-18.67 = 1.33 million workers will produce wheat

they will produce 2*18.67 = 37.33 million cars

and 28*1.33 = 37.33 million bushels of wheat

It is marked on the PPF above

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
Suppose there are 10 million workers in Canada and that each of these workers can produce...
Suppose there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. Draw Canada’s production possibilities frontier and show where it would produce if it decided to consume an equal amount of cars and of bushels of wheat. (20 pts.) How would it distribute its workers to produce the quantities in b.? (10 pts.)
1. Suppose that there are 10 million workers in Canada and that each can produce either...
1. Suppose that there are 10 million workers in Canada and that each can produce either 2 cars or 30 bushels of wheat in a year. If the United States offers to buy 10 million cars from Canada in exchange for 20 bushels of wheat per car a. Canada should renegotiate the deal to sell 10 million cars in exchange for 10 bushels of wheat per car b. Canada should not accept the deal c. none of the above d....
Suppose that there are 7 million workers in Mexico and that each of these workers can...
Suppose that there are 7 million workers in Mexico and that each of these workers can produce either 2 cars or 50 bushels of wheat in a year. The opportunity cost of producing a car in Mexico is   bushels of wheat, and the opportunity cost of producing a bushel of wheat in Mexico is   cars.
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain per year, whereas a Japanese worker can produce 5 tonnes of grain per year. To keep things simple, assume that each country has 100 million workers. Graph the production possibilities frontier of the Canadian and Japanese economies. For Canada, what is the opportunity cost of a car? Of grain? For Japan, what is the opportunity cost of a car? Of...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce...
Canadian and Japanese workers can each produce 4 cars per year. A Canadian worker can produce 10 tonnes of grain per year, whereas a Japanese worker can produce 5 tonnes of grain per year. To keep things simple, assume that each country has 100 million workers. a. Starting from a position without trade, give a numerical example in which trade makes each country better off. answer the part a
Suppose that in the United States 4 worker-hours are required to produce each unit of clothing...
Suppose that in the United States 4 worker-hours are required to produce each unit of clothing and each unit of food. In Canada, 1 worker-hour is required for each unit of clothing and 2 worker hours are required for a unit of food. Show your work. A. Assuming that each country has 40 worker-hours of labor available for production, draw the production possibilities frontiers for each country. What do the slopes of these frontiers indicate? (Place Food on the Vertical...
4. Problems and Applications Q4 An economy consists of three workers: Carlos, Felix, and Larry. Each...
4. Problems and Applications Q4 An economy consists of three workers: Carlos, Felix, and Larry. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Carlos can either mow 1 lawn or wash 1 car; Felix can either mow 1 lawn or wash 2 cars; and Larry can either mow 2 lawns or wash 1 car. For each of the scenarios listed in the following table, determine how many lawns will...
All question about True or False. 1.A production possibilities frontier allows us to identify the opportunity...
All question about True or False. 1.A production possibilities frontier allows us to identify the opportunity cost of producing a particular good in an economy ( T/F) 2.In the circular flow model, people earn income and spend it on goods and services. The amount spent on the goods and services becomes profit for the firm. (T/F) 3.A production possibilities frontier identifies the relationship between the quantity of a good produced and the cost of producing that good. (T/F) 4.In Country...
Suppose each worker in the home country can produce 2 cars or 10 TVs, and each...
Suppose each worker in the home country can produce 2 cars or 10 TVs, and each worker in the foreign country can produce 10 cars or 2 TVs. Assume that the total number of workers in both countries is 100. Suppose the world price of car relative to TV with free trade is 2. 1. Which good will each country produce, export and import? Explain your reasoning. 2. Calculate the quantities of output of cars and TVs in the world...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT