Business, 05.05.2020 05:43 GreenHerbz206

Consider two countries, Anguilla and Montserrat. Suppose each can produce two goods: Fish and Rum. Anguilla as 15,000 people, and it takes 5 people to produce 1 load of fish, and 6 people to produce 1 load of rum. Montserrat has 12,000 people, and it takes 3 people to produce 1 load of fish and 4 people to produce 1 load of rum. Further, suppose a volcanic eruption on Montserrat forces many residents to abandon the country. After this eruption, only 4800 people remain on the island.
Draw the PPF for Montserrat. Show the impact of the volcanic eruption - show both the before and after PPF on the same graph. Put Fish on the vertical axis. Clearly label each intersection point.
1. Who has the absolute advantage in fish?
a. Anguilla
b. Montserrat
c. Anguilla before the volcano, Montserrat after
d. Montserrat before the volcano, Anguilla after
2. What is Anguilla's opportunity cost of 1 unit of fish (in rum)?
3. What is Anguilla's opportunity cost of 1 unit of rum (in fish)?
4. What is Montserrat's opportunity cost of 1 unit of fish (in rum) before the volcano?
5. What is Montserrat's opportunity cost of 1 unit of rum (in fish) after the volcano?
6. If the two countries want to both become better off, who should make rum and trade it for fish?
a. Anguilla
b. Montserrat
c. Anguilla before the volcano, Montserrat after
d. Montserrat before the volcano, Anguilla after
e. The two countries cannot profitably trade
f. The answer is ambiguous

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:50

Which of the following is not a potential problem with beta and its estimation? sometimes, during a period when the company is undergoing a change such as toward more leverage or riskier assets, the calculated beta will be drastically different than the "true" or "expected future" beta. the beta of "the market," can change over time, sometimes drastically.

Answers: 3

Answer

Business, 22.06.2019 17:50

Abc factory produces 24,000 units. the cost sheet gives the following information: direct materials rs. 1,20,000direct labour rs. 84,000variable overheads rs. 48,000semi variable overheads rs. 28,000fixed overheads rs. 80,000total cost rs. 3,60,000presently the product is sold at rs. 20 per unit.the management proposes to increase the production by 3,000 units for sales in the foreign market . it is estimated that semi variable overheads will increase by rs. 1,000. but the product will be sold at rs. 14 per unit in the foreign market. however, no additional capital expenditure will be incurredq-1. what is present profit of the company ? q-2. what is proposed profit of the company in new market? q-3.what is suggestion for new makret proposal whether proposal accept or not

Answers: 1

Answer

Business, 22.06.2019 20:00

River corp's total assets at the end of last year were $415,000 and its net income was $32,750. what was its return on total assets? a. 7.89%b. 8.29%c. 8.70%d. 9.14%e. 9.59%

Answers: 3

Answer

Business, 22.06.2019 23:20

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?

Answers: 3

Answer

You know the right answer?

Consider two countries, Anguilla and Montserrat. Suppose each can produce two goods: Fish and Rum. A...

Questions