Machine Minutes Machine Minutes Hairbrush Refer to Table 3-3. Assume that Zimbab
ID: 1134844 • Letter: M
Question
Machine Minutes
Machine Minutes
Hairbrush
Refer to Table 3-3. Assume that Zimbabwe and Portugal each has 180 machine minutes available. If each country divides its time equally between the production of toothbrushes and hairbrushes, then total production is
a.
24 toothbrushes and 12 hairbrushes.
b.
48 toothbrushes and 24 hairbrushes.
c.
96 toothbrushes and 48 hairbrushes.
d.
720 toothbrushes and 1440 hairbrushes.
29. Refer to Table 3-3. Which of the following combinations of toothbrushes and hairbrushes could Portugal produce in 30 minutes?
a.
1 toothbrush and 4 hairbrushes
b.
4 toothbrushes and 2 hairbrushes
c.
5 toothbrushes and 6 hairbrushes
d.
6 toothbrushes and 5 hairbrushes
30. Refer to Table 3-3. Which of the following combinations of toothbrushes and hairbrushes could Zimbabwe notproduce in 120 minutes?
a.
5 toothbrushes and 11 hairbrushes
b.
10 toothbrushes and 9 hairbrushes
c.
20 toothbrushes and 6 hairbrushes
d.
30 toothbrushes and 3 hairbrushes
31. Refer to Table 3-3. Zimbabwe’s opportunity cost of one hairbrush is
a.
3/10 toothbrush and Portugal’s opportunity cost of one hairbrush is 5/6 toothbrush.
b.
3/10 toothbrush and Portugal’s opportunity cost of one hairbrush is 6/5 toothbrushes.
c.
10/3 toothbrushes and Portugal’s opportunity cost of one hairbrush is 5/6 toothbrush.
d.
10/3 toothbrushes and Portugal’s opportunity cost of one hairbrush is 6/5 toothbrushes.
32. Refer to Table 3-3. Suppose Zimbabwe decides to increase its production of toothbrushes by 10. What is the opportunity cost of this decision?
a.
0.3 hairbrush
b.
3 hairbrushes
c.
30 hairbrushes
d.
100 hairbrushes
33. Refer to Table 3-3. Zimbabwe has an absolute advantage in the production of
a.
toothbrushes and a comparative advantage in the production of toothbrushes.
b.
toothbrushes and a comparative advantage in the production of hairbrushes.
c.
hairbrushes and a comparative advantage in the production of toothbrushes.
d. hairbrushes and a comparative advantage in the production of hairbrushes
Refer to Table 3-3. Portugal has an absolute advantage in the production of
a.
toothbrushes and a comparative advantage in the production of toothbrushes.
b.
toothbrushes and a comparative advantage in the production of hairbrushes.
c.
hairbrushes and a comparative advantage in the production of toothbrushes.
d.
hairbrushes and a comparative advantage in the production of hairbrushes.
35. Refer to Table 3-3. Assume that Zimbabwe and Portugal each has 60 machine minutes available. Originally, each country divided its time equally between the production of toothbrushes and hairbrushes. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output increased by
a.
4 toothbrushes and 2 hairbrushes.
b.
10 toothbrushes and 5 hairbrushes.
c.
16 toothbrushes and 8 hairbrushes.
d.
20 toothbrushes and 10 hairbrushes.
36. Refer to Table 3-3. Zimbabwe and Portugal would notbe able to gain from trade if Zimbabwe's opportunity cost of one toothbrush changed to
a.
0 coolers.
b.
5/6 cooler.
c.
6/5 coolers.
d.
Zimbabwe and Portugal can always gain from trade regardless of their opportunity costs.
Machine Minutes
Needed to Make 1Machine Minutes
Needed to Make 1 ToothbrushHairbrush
Zimbabwe 3 10 Portugal 5 6Explanation / Answer
Maximum production:
1) When time is divided equally:
48 toothbrushes and 24 hairbrushes (e.g. toothbrush = 90/3 + 90/5 = 48)
2)
1 toothbrush and 4 hairbrushes (time = 5 + 4 x 6 = 29 min < 30 min)
3) 5 toothbrushes and 11 hairbrushes (total time = 5 x 3 + 11 x 10 = 125 min)
4) Zimbabwe opportunity cost of 1 hairbrush = 60/18 = 10/3 toothbrushes (and Portugal = 36/30 = 6/5)
5) 3 hairbrushes (opportunity cost = 10 x 3/10 = 3)
6) Zimbabwe has an absolute advantage in production of toothbrushes and a comparative advantage in the production of toothbrushes.
7) Portugal has an absolute advantage in the production of hairbrushes and a comparative advantage in the production of hairbrushes.
8) without specialization : toothbrushes = (30/3 + 30/5) = 16 , hairbrushes = (30/10 + 30/6) = 8
after specialization: toothbrushes = 60/3 = 20 and hairbrushes = 60/6 = 10
Increase: 4 toothbrushes and 2 hairbrushes.
9) Trade would stop when opportunity cost of Zimbabwe = opportunity cost of Portugal = 6/5 hairbrushes
Toothbrush Hairbrush Zimbabwe 60 18 Portugal 36 30Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.