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

Author Question: Consider the following weekly production possibilities of gloves and hats in Panama and Russia: ... (Read 56 times)

Wadzanai

  • Hero Member
  • *****
  • Posts: 528
Consider the following weekly production possibilities of gloves and hats in Panama and Russia:
 
  Russia Panama
  Gloves 20 180
  Hats 80 90
 
  What is each country's opportunity cost of producing gloves and hats? If the countries could, should they trade?

Question 2

If currency outside of banks is 800 billion; traveler's checks are 10 billion; checkable deposits owned by individuals and businesses are 700 billion; savings deposits are 4,000 billion; small time deposits are 1,000 billion; and money market
 
  funds and other deposits are 800 billion, then M2 equals ________ billion.
  A) 7,310 B) 5,800 C) 710 D) 2,510 E) 1,510



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

heyhey123

  • Sr. Member
  • ****
  • Posts: 353
Answer to Question 1

Russia's opportunity cost of a glove is 4 hats, while Panama's opportunity cost of a glove is 1/2 of a hat. The opportunity costs of hats are the reciprocals of these. Even though Panama has an absolute advantage in the production of all goods, it will still make sense for Panama to specialize in glove production (because of its comparative advantage) and trade for hats, as Russia has the comparative advantage in hat production.

Answer to Question 2

A




Wadzanai

  • Member
  • Posts: 528
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

For a complete list of videos, visit our video library