Consider Iran and Iraq and their production of oil and olive oil. Relatively recent OPEC estimates...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider Iran and Iraq and their production of oil and olive oil. Relatively recent OPEC estimates indicate that in July 2012, Iran produced about 4.1 million barrels of oil per day and Iraq produced about 3.2 million barrels of oil per day, making them the second- and third-largest oil producers in OPEC, behind Saudi Arabia (and the 4th and 7th largest oil producing countries in the world). Suppose that Iran and Iraq both produce barrels of oil and bottles of olive oil, which are sold for the same price in both countries. These are the combinations of the two goods that each country can produce in one day using the same amounts of capital and labor (with all measures in millions throughout): Oil (Barrels) 0 2 4 6 8 Your Answer: Iran Olive Oil (Bottles) Oil (Barrels) 12 0 Answer 963 o 0 IN46 2 8 Iraq Olive Oil (Bottles) 8 Suppose that without specialization, Iran produces 4 barrels of oil and 6 bottles of olive oil, and Iraq produces 4 barrels of oil and 4 bottles of olive oil (in millions per day). Are the countries better off or worse off with specialization and trade? Suppose that the terms of trade with specialization are 4 barrels of oil for 4.2 bottles of olive oil, and that 4 barrels of oil are indeed traded for 4.2 bottles of olive oil. With specialization and trade, how many additional barrels of oil can Iraq consume? Provide your answer as a Aumber measured in millions rounded to two decimal places. Use "-" to indicate negative amounts. Do not include any symbols, such as "$," "," "%," or "." in your answer. 6420 Consider Iran and Iraq and their production of oil and olive oil. Relatively recent OPEC estimates indicate that in July 2012, Iran produced about 4.1 million barrels of oil per day and Iraq produced about 3.2 million barrels of oil per day, making them the second- and third-largest oil producers in OPEC, behind Saudi Arabia (and the 4th and 7th largest oil producing countries in the world). Suppose that Iran and Iraq both produce barrels of oil and bottles of olive oil, which are sold for the same price in both countries. These are the combinations of the two goods that each country can produce in one day using the same amounts of capital and labor (with all measures in millions throughout): Oil (Barrels) 0 2 4 6 8 Your Answer: Iran Olive Oil (Bottles) Oil (Barrels) 12 0 Answer 963 o 0 IN46 2 8 Iraq Olive Oil (Bottles) 8 Suppose that without specialization, Iran produces 4 barrels of oil and 6 bottles of olive oil, and Iraq produces 4 barrels of oil and 4 bottles of olive oil (in millions per day). Are the countries better off or worse off with specialization and trade? Suppose that the terms of trade with specialization are 4 barrels of oil for 4.2 bottles of olive oil, and that 4 barrels of oil are indeed traded for 4.2 bottles of olive oil. With specialization and trade, how many additional barrels of oil can Iraq consume? Provide your answer as a Aumber measured in millions rounded to two decimal places. Use "-" to indicate negative amounts. Do not include any symbols, such as "$," "," "%," or "." in your answer. 6420
Expert Answer:
Answer rating: 100% (QA)
ANSWER With specialization and trade Iraq can consume an additional 042 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Peso Changes. In December 1994, the government of Mexico officially changed the value of the Mexican peso from 3.21 pesos per dollar to 5.46 pesos per dollar. What was the percentage change in its...
-
Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income Statement Including Earnings per Share South Bend Repair Service Co. keeps its records without the help of an...
-
Preparing Both an Income Statement and a Balance Sheet from a Trial Balance Dynamite Sales (organized as a corporation on September 1, 2010) has completed the accounting cycle for the second year,...
-
Determine whether the following taxpayers have gross income from the payment of their expenses: a. Julia's mother, Henrietta, is short of cash when it comes time to pay her property taxes. Julia pays...
-
Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: Units completed .................... 196,000...
-
What are some types of system characteristics?
-
Whether hearsay evidence may be admissible under a hearsay exception?
-
Heron Company purchases commercial realty on November 13, 1997, for $650,000. Straight-line depreciation of $287,492 is claimed before the property is sold on February 23, 2015, for $850,000. What...
-
4. A 50 mm diameter standard solid shaft must be replaced by a specially manufactured hollow shaft of the same material with a diameter ratio of 1,5 to 1 Determine diameters for the hollow shaft and...
-
1. Considering Yips globalisation framework (Figure 9.2), what drivers of internationalisation do you think were most important when Wanda entered the US market through its AMC and Legendary...
-
Boeing is starting a new advertising campaign increase its commercial space component. They are hoping to get the best possible exposure in terms of the number of people the advertising reaches. The...
-
After liquidating noncash assets and paying creditors, account balances in the Main Co. are Cash $29,000. Partners Johnson, Murry, and Rodriguez have capital credit balances of $11,000, $8,000 and...
-
Lemon company purchased 120 units for $40 each on January 31. It purchased 180 units for $35 each on February 28. It sold 180 units for $50 each from March 1 through December 31. If the company uses...
-
1. Describe waste and give three examples. 2. What is the value of lean manufacturing? 3. What is the objective of EOQ? 4. What are the risks of JIT? 5. Explain the value of being able to respond to...
-
Find a polynomial function f(x) of degree 3 with real coefficients that satisfies the following conditions. Zero of 0 and zero of 2 having multiplicity 2;f(3)=18
-
Listen to the AutogenicTraining Exercise on online 2. Complete exercise 26.1 from the Workbook and submit your answers here. Reference: https://soundcloud.com/user-723932298/autogenic-training...
-
What is the ending inventory using the average cost method? Fulbright Corporation uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases...
-
If 2 5 9 - k 5 8 = 2 5 8 , what is the value of k?
-
An investment will pay $11,000 at the end of the first year, $30,000 at the end of the second year, and $50,000 at the end of the third year. Determine the present value of this investment using a 10...
-
What is a trial balance? What is its purpose?
-
University Food Systems, Inc., has issued a 40 percent stock dividend. The company has 752,000 shares authorized and 200,000 shares outstanding. The par value of the stock is $10 per share, and the...
-
Is the color of a smartphone nominal or ordinal?
-
A pollster wants to estimate the proportion of voters in a certain town who are Democrats. He goes to a large shopping mall and approaches people to ask whether they are Democrats. Is this a simple...
-
Provide an example of a qualitative variable and an example of a quantitative variable.
Study smarter with the SolutionInn App