Consider Huy and Christian who each have 8 hours available. The production possibilities for Huy and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider Huy and Christian who each have 8 hours available. The production possibilities for Huy and Christian are shown in the table below: it shows the respective amounts of exam questions or poems each can produce in 8 hours: Huy Christian Exam questions 20 15 Poems 10 5 Assume that Huy and Christian both derive positive utility from exam questions and poems. Suppose that, if Huy and Christian do not trade, each of them would spend half of the time available on each activity (that is, each spends 4 hours on producing each good). What are the total gains from specialization in the "Huy and Christian economy" if Huy and Christian specialise completely in the activity they have a comparative advantage in (and then trade with each other)? a. The gains from specialization are zero in this case. b. 2.5 exams and 2.5 poems. c. 20 exams and 10 poems. d. 5 exams and 0 poems. e. None of the above. Consider Huy and Christian who each have 8 hours available. The production possibilities for Huy and Christian are shown in the table below: it shows the respective amounts of exam questions or poems each can produce in 8 hours: Huy Christian Exam questions 20 15 Poems 10 5 Assume that Huy and Christian both derive positive utility from exam questions and poems. Suppose that, if Huy and Christian do not trade, each of them would spend half of the time available on each activity (that is, each spends 4 hours on producing each good). What are the total gains from specialization in the "Huy and Christian economy" if Huy and Christian specialise completely in the activity they have a comparative advantage in (and then trade with each other)? a. The gains from specialization are zero in this case. b. 2.5 exams and 2.5 poems. c. 20 exams and 10 poems. d. 5 exams and 0 poems. e. None of the above.
Expert Answer:
Answer rating: 100% (QA)
total lator hours Now C DC table of MP Marginal productivity exam 20 of 8 15 ... View the full answer
Related Book For
Posted Date:
Students also viewed these mathematics questions
-
Let L = x D + 1, and M = D - x be differential operators. Find L M and M L. Do the differential operators commute?
-
Jar Inc, Begins 2014 with 10,000 SH of common stock outstanding. They also have 1,000 SH of $100 par value, 10% cumulative preferred. Each share of preferred stock is convertible for 2 shares of...
-
In Figure 37.5 let L = 1.20 m and d = 0.120 mm and assume that the slit system is illuminated with monochromatic 500-nm light. Calculate the phase difference between the two wave fronts arriving at P...
-
Consider a portfolio of the following derivatives where the counterparty is an OECD bank. Derivative 8-year interest rate swap 6-month option on an equity 1-year swap on precious metals 9-month...
-
Consider the Basis for Conclusions in IAS 16, Property, Plant and Equipment ( particularly paragraph BC25) as well as the legacy United Kingdom standard on tangible fixed assets - Financial Reporting...
-
Maximize f = 40x1 + 20x2 subject to 3x1 + 2x2 120 x1 + x2 50 A primal maximization problem is given. (a) Form the dual minimization problem. (b) Solve both the primal and dual problems with the...
-
\({ }^{74} \mathrm{As}\) is a beta-plus emitter used for locating tumors with PET. What is the daughter nucleus? A. \({ }_{33}^{73} \mathrm{As}\) B. \({ }_{32}^{74} \mathrm{Ge}\) C. \({ }_{34}^{74}...
-
Assume that Reynolds tax rate is 40 percent and the equipments depreciation would be $100 per year. If the company leased the asset on a 2-year lease, the payment would be $110 at the beginning of...
-
Suppose you observe the following direct spot quotations in New York and Toronto, respectively: 0.8000-50 and 1.2500-60. What are the arbitrage profits per $1 million? Assuming no transaction costs,...
-
Assign latest poverty to a three-column table with one row for each country that appears in the poverty table. The first column should contain the 3-letter code for the country. The second column...
-
A company manufactures boxes of staples. Staple boxes contain ten cartridges to a box. The lead time to package a box is two weeks. If the MRP for boxes calls for a planned order release of 4150 in...
-
Explain the four conditions that must hold for the existence of a well-defined property rights system, and address why all four matter.
-
Define Pareto efficiency.
-
Which new functional blocks (if any) do we need for this instruction? The basic single-cycle MIPS implementation in Figure 4.2 can only implement some instructions. New instructions can be added to...
-
Use the preceding information for Purnells purchase of Sentinel common stock. Assume Purnell exchanges 19,000 shares of its own stock for 80% of the common stock of Sentinel. The stock has a market...
-
What should happen if the processor issues a request that hits in the cache while a block is being written back to main memory from the write buffer? In this exercise, we will explore the control...
-
A mass M is suspended by the system of ideal strings and pulleys shown. The system is static. The string tension is labelled at several positions, but there are only two pieces of string. The long...
-
9.Consider the reaction 3NO2(g)+H2O=2HNO3(aq)+NO(g) where Delta H=-137 kJ.How many kilojoules are released when 92.3g of NO2 reacts?
-
What is the effect on the noncontrolling share of consolidated income that results from the recording in the consolidated statements work paper of differences between book value and the value implied...
-
Explain the potential advantages of a stock ac question over an asset acquisition.
-
Hill, Jones, and Vose have been partners throughout 2008. Their average balances for the year and their balances at the end of the year before closing the nominal accounts are as follows: The income...
-
If you want to understand how the worldwide quality movement has benefited consumers, just look at automobiles. What used to be considered a luxury option is now just standard, said one quality...
-
Immediately following World War II, the quality of products produced by Japanese companies was not good enough to compete in the international marketplace. The only advantage Japanese companies had...
-
A professional baseball team set its sights on winning the World Series. The team owner wanted to win big and win fast. Consequently, the team sank all of its resources into trading for the best...
Study smarter with the SolutionInn App