This topic contains a solution. Click here to go to the answer

Author Question: Table 2-17One MotorcycleOne GuitarIreland10 hours2.5 hoursScotland9 hours2 hoursRefer to Table 2-17. ... (Read 740 times)

jho37

  • Hero Member
  • *****
  • Posts: 531

Table 2-17

One MotorcycleOne Guitar
Ireland10 hours2.5 hours
Scotland9 hours2 hours

Refer to Table 2-17. This table shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland.

a.

Assume each country has a total of 2,700 labor hours to devote to the production of the two
goods and draw the production possibilities frontier for each country. Put "Motorcycle" on the horizontal axis and "Guitar" on the vertical axis. Be sure to identify the intercept values on your graphs.

b.

Suppose each country allocates 55% of its labor hours to guitar production and 45% to the
production of motorcycles. Complete Table 2-18 below to show each country's output of the two products.

Table 2-18: Production and Consumption with no Trade

Motorcycle OutputGuitar Output
Ireland
Scotland
Total

c.

If the two countries do not trade and consume whatever they produce, identify the current
production and consumption point for each country on their respective production possibilities frontiers. Label Ireland's consumption point "I" and Scotland's consumption point "S".

d.

Suppose the two countries specialize and trade. Which country should produce motorcycles
and which should produce guitars? Explain your answer.

e.

Complete Table 2-19 below to show each country's output with specialization.


Table 2-19: Output with Specialization

Motorcycle OutputGuitar Output
Ireland
Scotland
Total

f.

Did specialization increase the combined output for the two countries without any increase in resources? If so, by how much?

g.

Suppose Ireland and Scotland agree to trade so that in exchange for 600 guitars, the exporter of
guitars receives 140 motorcycles. Complete Table 2-20 below to show each country's consumption bundle after trade.


Table 2-20: Consumption with Trade

Motorcycles Guitars
Ireland
Scotland

h.

Show the consumption points after trade on each country's production possibilities frontier. Label these points "X" for Ireland and "Y" for Scotland.

i.

Has trade made the two countries better off? Explain your answer.
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jho37 on Oct 5, 2019

medine

  • Sr. Member
  • ****
  • Posts: 344
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly



josephine patt

  • Newbie
  • *
  • Posts: 1

acarrias

  • Newbie
  • *
  • Posts: 1

Kyah Kerr

  • Newbie
  • *
  • Posts: 1

Jorge Lopez

  • Newbie
  • *
  • Posts: 1

Lilian Lim

  • Newbie
  • *
  • Posts: 1

 

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

For a complete list of videos, visit our video library