CH 18 HW EJ

Gilberto's opportunity cost of producing 1 bushel of rye is ___ bushels of corn, whereas Juanita's opportunity cost of producing 1 bushel of rye is ___ bushels of corn. Because Gilberto has a ______ opportunity cost of producing rye than Juanita, ____ has a comparative advantage in the production of rye, and ____ has a comparative advantage in the production of corn.

2/3 lower Gilberto / Juanita

Initially, suppose Bellissima uses 1 million hours of labor per month to produce rye and 3 million hours per month to produce jeans while Felicidad uses 3 million hours of labor per month to produce rye and 1 million hours per month to produce jeans. Consequently, Bellissima produces 8 million bushels of rye and 48 million pairs of jeans, and Felicidad produces 15 million bushels of rye and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces. Bellissima's opportunity cost of producing 1 bushel of rye is ____ of jeans, and Felicidad's opportunity cost of producing 1 bushel of rye is ____ of jeans. Therefore, ____has a comparative advantage in the production of rye, and ____ has a comparative advantage in the production of jeans.

2/4 Bellissima/ Felicidad

Suppose that each country decides to completely specialize in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces corn will produce ____million bushels per week, and the country that produces jeans will produce _____million pairs per week.

24 / 64

Kenji's opportunity cost of producing 1 bushel of corn is ____ bushels of rye, whereas Lucia's opportunity cost of producing 1 bushel of corn is _____ bushels of rye. Because Kenji has a _____ opportunity cost of producing corn than Lucia, ____ has a comparative advantage in the production of corn, and ______ has a comparative advantage in the production of rye.

3 4 Lower / Kenji / Lucia

Suppose that each country decides to completely specialize in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce ____ million bushels per month, and the country that produces jeans will produce ____ million pairs per month.

32 80

Suppose that each country decides to completely specialize in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces corn will produce ____ million bushels per month, and the country that produces jeans will produce ______ million pairs per month.

32 / 80

Alex's opportunity cost of producing 1 bushel of alfalfa is ___ bushels of barley, whereas Becky's opportunity cost of producing 1 bushel of alfalfa is ___ bushels of barley. Because Alex has a _____ opportunity cost of producing alfalfa than Becky, _____ has a comparative advantage in the production of alfalfa, and ____ has a comparative advantage in the production of barley.

4 / 3 / higher / Becky / Alex

Darnell's opportunity cost of producing 1 bushel of rye is _____bushels of corn, whereas Eleanor's opportunity cost of producing 1 bushel of rye is ______ bushels of corn. Because Darnell has a _____ opportunity cost of producing rye than Eleanor, ______ has a comparative advantage in the production of rye, and ______ has a comparative advantage in the production of corn.

5 / 2 higher / Elenor / Darnell

Rajiv's opportunity cost of producing 1 bushel of rye is ___ bushels of corn, whereas Simone's opportunity cost of producing 1 bushel of rye is ___ bushels of corn. Because Rajiv has a ____ opportunity cost of producing rye than Simone, _____ has a comparative advantage in the production of rye, and ____ has a comparative advantage in the production of corn.

5 / 4 / higher / Simone / Rajiv.

When the two countries did not specialize, the total production of corn was 18 million bushels per week, and the total production of jeans was 52 million pairs per week. Because of specialization, the total production of corn has increased by ____ million bushels per week, and the total production of jeans has increased by ____ million pairs per week.

6 / 12

When the two countries did not specialize, the total production of rye was 23 million bushels per month, and the total production of jeans was 68 million pairs per month. Because of specialization, the total production of rye has increased by ___ million bushels per month, and the total production of jeans has increased by ___ million pairs per month.

9 12

When the two countries did not specialize, the total production of corn was 23 million bushels per month, and the total production of jeans was 68 million pairs per month. Because of specialization, the total production of corn has increased by _____ million bushels per month, and the total production of jeans has increased by _____ million pairs per month.

9 / 12

____ has an absolute advantage in the production of barley, and ____ has an absolute advantage in the production of alfalfa.

Becky / Becky

Consider two neighboring island countries called Dolorium and Bellissima. 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. Chart Initially, suppose Bellissima uses 1 million hours of labor per month to produce corn and 3 million hours per month to produce jeans while Dolorium uses 3 million hours of labor per month to produce corn and 1 million hours per month to produce jeans. Consequently, Dolorium produces 15 million bushels of corn and 20 million pairs of jeans, and Bellissima produces 8 million bushels of corn and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of corn and jeans it produces.

Dolorium's opportunity cost of producing 1 bushel of corn is 4 pairs of jeans, and Bellissima's opportunity cost of producing 1 bushel of corn is 2 pairs of jeans. Therefore, Bellissima has a comparative advantage in the production of corn, and Dolorium has a comparative advantage in the production of jeans.

____ has an absolute advantage in the production of corn, and ____ has an absolute advantage in the production of rye.

Elenor Elenor

_____ has an absolute advantage in the production of corn, and ______ has an absolute advantage in the production of rye.

Juanita Gilberto

_____ has an absolute advantage in the production of rye, and ____ has an absolute advantage in the production of corn.

Kenji Kenji

____ has an absolute advantage in the production of corn, and ____ has an absolute advantage in the production of rye.

Simone / Simone