User Account

All Pages

Canadian opportunity cost and production possibilities

Assignment Help Macroeconomics
Reference no: EM1311395

Suppose that there are 10 million workers in Canada, and that each worker can produce either 2 cars or 30 tonnes of wheat in a year.

(a) What is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a tonne of wheat in Canada? Explain the relationship between the opportunity costs of the two goods.

(b) Draw Canada's production possibilities frontier. If Canada chooses to consume 10 million cars, how much wheat can it consume without trade? Label this point on the production possibilities frontier.

(c)  Suppose that the United States offers to buy 10 million cars from Canada in exchange for 20 tonnes of wheat per car. If Canada continues to consume 10 million cars, how much wheat does this deal allow Canada to consume? Label this point on your diagram. Should Canada accept the deal?

Reference no: EM1311395

Questions Cloud

Gdp inequality between countries : Using the dataset, produce a graph of per capita GDP for Argentina, China, and Canada from 1965 to 1995. Is inequality between these countries increasing?
How would you support denny''s view : How would you support Denny's view? How would you support Austin's view?
Find the distance point of the blade has traveled in 3 sec : Find the distance point P on the tip of the blade has traveled in 3 sec. Also, find the magnitude of the acceleration of point P when t = 3 sec.
Scatter plots comparing gdp growth : Make for more scatter plots comparing GDP growth 1970-2000 to corruption, political rights, rule of law, and socio-political instability
Canadian opportunity cost and production possibilities : What is opportunity cost of producing a car in Canada? What is the opportunity cost of producing the tonne of wheat in Canada? Describe the relationship between the opportunity costs of two goods.
Short description on mental fitness,collaborative learning : Write short description about the Mental fitness, collaborative learning, lifelong learning and self-directed learning.
Redrafting contribution margin statements : Redrafting contribution Margin statements - Electricity cost is only for lighting a rather large area of land for play at night and is always on after sunset regardless of how many shooters are on site.
Critical f value : Find the critical F value for the Following,
Computing canadian and south korean opportunity cost : Assume that there're 10 million workers in Canada and South Korea and each worker in Canada and South Korea can manufacture four cars per year.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Cartel behavior in coal industry

Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.

  Find out perfectly equal distribution

Suppose that a perfectly equal distribution of income existed  in Disneyland. Which of the reccent residents would have the  same income he or she has in present distribution?

  Macroeconomics questions

Macroeconomics questions,  discuss the short-run and long-run effects,  Keynesian model,  Distinguish between ongoing demand pull and ongoing cost push inflation.

  Contractionary and expansionary monetary policy

What is the difference between contractionary and expansionary monetary policy?

  Vulnerability analysis

Vulnerability Analysis

  Profit maximizing behavior of natural monopoly

Compute total revenue, marginal revenue, marginal cost, and average total cost of this natural monopoly. What is the profit maximizing output and price for this natural monopoly when the government does not regulate it?

  Problem of the book assuming that the utility is cobb-dougla

Consider the problem of the book assuming that the utility is Cobb-Douglas (U (C, l) = C α l β )

  True or false questions on monopoly and perfect competition

Perfect competition guarantees allocative efficiency. A profit-maximizing monopolist can never be allocatively efficient.

  Difference between nominal interest and real interest rate

Would you rather earn a 4 % nomical or 4% real interest rate? Illustrate by describing the difference between nominal and real variables.

  Statement of competitive market and least-cost production

Describe the following statement: "In competitive market the least-cost production methods are revealed by entry and exit, while in public utility regulation they're revealed by commission rate hearings. It is easier to fool commissi..

  Explain the current success of harrah strategy

Discuss the advantages and/or disadvantages of distributing marketable pesticide permits to each farm operating in the watershed equal to 40% of its current level of use of that pesticide, versus simply ordering each farm to reduce pesticide use t..

  Production and cost estimation

Do the estimated coefficients have the required signs to yield a-shaped AVC curve? Discuss the significance using the p-values.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd