Economics Questions If a buyer values a product at dollar 28 and a seller\'s opp

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Economics Questions

If a buyer values a product at dollar 28 and a seller's opportunity cost of providing the product is dollar 12, the gains from trade are dollar 28. are dollar 12. are dollar 16. are dollar 40. 1. You miss the last train home on New Year's Eve. After walking for an hour, you spot a taxi. Its driver wants to charge dollar 150 to take you home, though the ride usually costs dollar 30. You are furious, but feel you have no other option and accept the deal. Finding the taxi. has made you better off and the driver worse off. has made you worse off and the driver better off. has made both you and the driver better off. has made both you and the driver worse off. has made the driver better off but left your well-being unchanged. 2. An individual will choose what to specialize in based on Quantity Price Absolute Advantage Comparative Advantage 3. If Bert can produce 25 cars or 25 trucks with the same resources that Ernie can produce 20 cars or 10 trucks, then Bert has the comparative advantage in cars; Ernie in trucks. Bert has the comparative advantage in trucks; Ernie in cars. Bert has the comparative advantage in both cars and trucks. Both a and d. 4. If England can make 10 umbrellas or 5 smoked fish in a day while Norway can make 5 umbrellas or 5 smoked fish, England has the comparative advantage in umbrellas and Norway has it in fish. Norway has the comparative advantage in umbrellas and England has it in fish. England is better at both umbrellas and fish. Norway's fish cost the same amount as England's 5. If you value a good at dollar 25 and you buy it from Ed, who values it at dollar 4, for a price of dollar 10, you have created total gains from trade of dollar 15 dollar21 dollar6 dollar25 6.

Explanation / Answer

1) 28-12 = 16$

2) has made both you and driver better off

3) comparative advantade

4) bert has comparative advantage in both cars and truck

5) england is better in both umbrellas and fish

6) 21$

5)

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