Question

In: Economics

Question 24 Scenario: Mark can make three tables and one chair in a day, while John...

Question 24

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day.

Refer to the scenario above. Which of the following is true in this case?

Mark should specialize in making chairs, because he has a lower opportunity cost of producing them.

Mark should specialize in making chairs, because he has a greater opportunity cost of producing them.

Mark should specialize in making tables, because he has a greater opportunity cost of producing them.

Mark should specialize in making tables, because he has a lower opportunity cost of producing them.

Question 25

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day.

Refer to the scenario above. Which of the following is true in this case?

John should specialize in making chairs, because he has a greater opportunity cost of producing them.

John should specialize in making chairs, because he has a lower opportunity cost of producing them.

John should specialize in making tables, because he has a greater opportunity cost of producing them.

John should specialize in making tables, because he has a lower opportunity cost of producing them.

Question 26 1

Scenario: Mark can make three tables and one chair in a day, while John can make four tables and one chair in a day.

Refer to the scenario above. Which of the following is true in this case?

John should specialize in making both chairs and tables.

John should specialize in making chairs, and Mark should specialize in making tables.

Mark should specialize in making both chairs and tables.

Mark should specialize in making chairs, and John should specialize in making tables.

Question 27 1 pts

One dollar could be exchanged for 55 rupees in 2013 and for 60 rupees in 2014. This implies that the ________.

nominal exchange rate did not change in 2014

rupee appreciated in 2014

dollar appreciated in 2014

real exchange rate did not change in 2014

Question 28

Assume that at the beginning of 2012, 1 dollar could be traded for 5 yuan. If in 2013, 1 dollar was being traded for 6 yuan, it can be concluded that ________.

the dollar depreciated against the yuan and the yuan appreciated against the dollar in 2013

the real exchange rate changed in 2013, assuming PPP holds

the dollar appreciated against the yuan and the yuan depreciated against the dollar in 2013

the nominal exchange rate did not change in 2013

Solutions

Expert Solution

24. Ans: Mark should specialize in making chairs, because he has a lower opportunity cost of producing them.

25.Ans: John should specialize in making tables, because he has a lower opportunity cost of producing them.

26.Ans: Mark should specialize in making chairs, and John should specialize in making tables.

Explanation:

For Mark;

The opportunity cost of 1 table = 1 / 3 = 0.33 units of chair

The opportunity cost of 1chair = 3 / 1 = 3 tables

For John;

The opportunity cost of 1 table = 1 / 4 = 0.25 units of chair

The opportunity cost of 1chair = 4 / 1 = 4 tables

A country has comparative advantage in the production of a good in which it has lower opportunity cost as compared to other country. A country will specialize in the production of a good in which it has lower opportunity cost as compared to other country.

27.Ans: dollar appreciated in 2014

Explanation:

In the year 2013: 1 dollar = 55 rupees

In the year 2014: 1 dollar = 60 rupees

So dollar is appreciated whereas rupee is depreciated in the year 2014.

28.Ans: the dollar appreciated against the yuan and the yuan depreciated against the dollar in 2013

Explanation:

In the year 2012: 1 dollar = 5 yuan

In the year 2013: 1 dollar = 6 yuan

So dollar is appreciated whereas yuan is depreciated in the year 2013.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

A sentence can end with full-stop, question mark, or an exclamation mark. Spaces precede and follow...
A sentence can end with full-stop, question mark, or an exclamation mark. Spaces precede and follow a word. Write a Python program to perform the following tasks: Receive a filename from the user, open a text file for reading, and read the file. Count the sentences in the text file. Count the number of words in the text file. Print these two values with appropriate labels as a result of running the program
Decision Scenario #7 Helen and John Kent waited nervously in the small consulting room while Laurie...
Decision Scenario #7 Helen and John Kent waited nervously in the small consulting room while Laurie Stent, their genetic counselor, went to tell Dr. Carles Blatz that they had arrived to talk to him. ?I regret that I have some bad new for you,? Dr. Blatz told them. ?the karyotyping that we do after aminocentesis shows a chromosomal abnormality.? He looked at them, and Helen felt she could hardly breathe. ?What is it?? she asked. ?It?s a condition known as...
the chair of the FASB at one time noted that "the flow of standards can only...
the chair of the FASB at one time noted that "the flow of standards can only be slowed if (1) producers focus less on quarterly earning per share and tax benefitd and more on quality products and (2) accountants and lawyers rely less on rules and law and more on proffessional judgment and conduct." explain his comment.
John John a 6-year-old child is fond of playing outside their house during weekends. One day...
John John a 6-year-old child is fond of playing outside their house during weekends. One day he tried to construct a makeshift house for their “bahay-bahayan” with his younger sister. During the construction, he hit his thumb holding the nail while using the hammer but with no reaction. There are also some scratches in his leg and arm which he got from the bushes around their house looking for materials he can use in the construction of his makeshift house....
Scenario You are a lawyer and one of your clients was hit by a car while...
Scenario You are a lawyer and one of your clients was hit by a car while crossing the street at a crosswalk. Her injuries required medical treatment and her hospital stay incurred $10,000 in medical expenses. Although the long term prognosis is for a full recovery, there is some chance of permanent damage. Your client has been advised by medical staff, if her pain continues, to return for further examination. Just after leaving the hospital, your client received an offer...
In three paragraphs or more, describe a business crisis scenario; it can be a real scenario...
In three paragraphs or more, describe a business crisis scenario; it can be a real scenario that happened to an existing company or a new scenario that you create. Then, come up with a crisis management plan of 3-5 steps that addresses how you would fix the crisis and how you would communicate to the public about it.
1) What are three observations one can make that indicate existence of adverse selection in a...
1) What are three observations one can make that indicate existence of adverse selection in a market?
Mark the correct answer Select one: a. An analyst can be classified as a "trader" or...
Mark the correct answer Select one: a. An analyst can be classified as a "trader" or "broker". b. A commercial bank is an institution that helps companies in their financing and securities (bonds, shares, etc.) issuance processes c. No answer d. None of the above is correct. e. An investment bank is an institution that offers deposits and loans
Scenario 1 You are the day charge nurse working on staffing for the overnight shift. Three...
Scenario 1 You are the day charge nurse working on staffing for the overnight shift. Three nurses will be working the night shift, and you note that two of the three nurses have been on the floor for less than six months. You are extremely concerned about the patient in 3212 who is detoxing and requires medication to be given every hour along with the frequent rounding and monitoring. You call the staffing office and tell them you need four...
Zach Carey was approximately week. One day, while cleaning windows on the eighth floor of the...
Zach Carey was approximately week. One day, while cleaning windows on the eighth floor of the Second National Bank Building, I have tripped and fell from the scaffolding to the pavement below. He has suffered severe multiple injuries but miraculously survived the accident. I was immediately rushed to the local hospital for surgery. I have remained there for 60 days of treatment, after which I was allowed to go home for further recovery. During his hospital stay, I incurred the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT