Question
In: Economics
Consider the two island countries of Sodor and the Isle of Mann. Both countries have linear...
- Consider the two island countries of Sodor and the Isle of Mann. Both countries have linear production possibility frontiers and have 1000 workers. Further each country is capable of producing, and consuming both Trains and Agricultural goods. The costs of production for each country are displayed below in terms of how many workers are needed to produce each good.
|
Trains(L/Train) |
Agriculture(L/Kg) |
|
|
Sodor |
6 |
2 |
|
Isle of Mann |
20 |
4 |
- Graph the PPF (assuming linearity) for each region. Be sure to fully label.
- Identify the direction of trade for each good.
- Identify a price range in terms of (KG/Train) in which we would trade.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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Food Chains on the Isle of Dell
On the Isle of Dell, a large island with a variety of habitats
and plant/animal species, the food chain has been left undisturbed
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shrubs. Inland water ways contain large schools of great goldfish
which thrive on the indigo waterweed. Nearer the
coastal areas, donkeys, camels, and hippos consume the lush, green
verdigrass. In the plains...
Use the following for questions 3-4. Consider two countries, Australia and Trinidad. Both are island economies...
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two countries, Australia and Trinidad. Both are island economies
endowed with major fishing resources and moderate climates. For
simplicity, imagine that both countries have two industries:
tourism and fishing. For the history of the country Australia has
been open to free trade. Currently, Trinidad is closed to trade –
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fish.
3. The current market price and quantity of fish in Trinidad
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10. Isle Royale is a small island located in Lake
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that are held in a delicate balance with one another. In the past,
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Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours...
Consider two neighboring island countries called Felicidad and
Contente. They each have 4 million labor hours available per week
that they can use to produce rye, jeans, or a combination of both.
The following table shows the amount of rye or jeans that can be
produced using 1 hour of labor.
Country
Rye
Jeans
(Bushels per hour
of labor)
(Pairs per hour
of labor)
Felicidad
4
16
Contente
6
12
Initially, suppose Contente uses 1 million hours of labor per...
Consider two neighboring island countries called Felicidad and Contente. They each have 4 million labor hours...
Consider two neighboring island countries called Felicidad and
Contente. They each have 4 million labor hours available per week
that they can use to produce rye, jeans, or a combination of both.
The following table shows the amount of rye or jeans that can be
produced using 1 hour of labor.
Country
Rye
Jeans
(Bushels per hour
of labor)
(Pairs per hour
of labor)
Felicidad
4
16
Contente
6
12
Initially, suppose Contente uses 1 million hours of labor per...
3. Gains from trade Consider two neighboring island countries called Euphoria and Arcadia. They each have...
3. Gains from trade
Consider two neighboring island countries called Euphoria and
Arcadia. They each have 4 million labor hours available per month
that they can use to produce corn, jeans, or a combination of both.
The following table shows the amount of corn or jeans that can be
produced using 1 hour of labor.
Country
Corn
Jeans
(Bushels per hour
of labor)
(Pairs per hour
of labor)
Euphoria
8
32
Arcadia
12
24
Initially, suppose Arcadia uses 1 million...
3. Gains from trade Consider two neighboring island countries called Contente and Euphoria. They each have...
3. Gains from trade
Consider two neighboring island countries called Contente and
Euphoria. They each have 4 million labor hours available per week
that they can use to produce rye, jeans, or a combination of both.
The following table shows the amount of rye or jeans that can be
produced using 1 hour of labor.
Country
Rye
Jeans
(Bushels per hour
of labor)
(Pairs per hour
of labor)
Contente
8
16
Euphoria
5
20
Initially, suppose Contente uses 1 million...
3. Gains from trade Consider two neighboring island countries called Felicidad and Arcadia. They each have...
3. Gains from trade Consider two neighboring island countries
called Felicidad and Arcadia. They each have 4 million labor hours
available per week that they can use to produce rye, jeans, or a
combination of both. The following table shows the amount of rye or
jeans that can be produced using 1 hour of labor. Country Rye Jeans
(Bushels per hour of labor) (Pairs per hour of labor) Felicidad 8
32 Arcadia 12 24 Initially, suppose Arcadia uses 1 million...
Consider two neighboring island countries called Contente and Euphoria. They each have 4 million labor hours...
Consider two neighboring island countries called Contente and
Euphoria. They each have 4 million labor hours available per week
that they can use to produce jeans, rye, or a combination of both.
The following table shows the amount of jeans or rye that can be
produced using 1 hour of labor.
Country
Jeans
Rye
(Pairs per hour of labor)
(Bushels per hour of labor)
Contente
6
12
Euphoria
4
16
Initially, suppose Contente uses 1 million hours of labor per...
3. Gains from trade Consider two neighboring island countries called Arcadia and Dolorium. They each have...
3. Gains from trade
Consider two neighboring island countries called Arcadia and
Dolorium. They each have 4 million labor hours available per week
that they can use to produce jeans, rye, or a combination of both.
The following table shows the amount of jeans or rye that can be
produced using 1 hour of labor.
Country
Jeans
Rye
(Pairs per hour of labor)
(Bushels per hour of labor)
Arcadia
6
12
Dolorium
4
16
Initially, suppose Arcadia uses 1 million...
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