The following table describes production possibilities for Spain and China. Each number in the table shows the number of workers needed to produce one unit of the product.
Country
toys
glasses
Spain
4
12
China
12
15
Suppose that both countries have `100` workers. What is the opportunity cost of producing toys in Spain?
glasses
`0.33333333333333`
If I am making toys with one worker how many glasses am I giving up? Or in other words, the cost of one toys is how many glasses? Divide toys by glasses
What is the opportunity cost of producing glasses in Spain?
toys
`3`
It might be a good idea to first draw the PPF for Spain and then calculate the slope of PPF.
What is the opportunity cost of producing toys in China?
glasses
`0.8`
It might be a good idea to first draw the PPF for China and then calculate the slope of PPF.
What is the opportunity cost of producing glasses in China?
toys
`1.25`
It might be a good idea to first draw the PPF for China and then calculate the slope of PPF.
Which country has an absolute advantage in producing toys?
Spain
absolute advantage: when one country can use fewer resources to produce a good compared to another country; when a country is more productive compared to another country.
Which country has an absolute advantage in producing glasses?
Spain
Absolute advantage: when one country can use fewer resources to produce a good compared to another country; when a country is more productive compared to another country.
Which country has a comparative advantage in producing glasses?
China
Comparative advantage: when a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production.
Which country has a comparative advantage in producing toys?
Spain
Comparative advantage: when a country can produce a good at a lower cost in terms of other goods; or, when a country has a lower opportunity cost of production.
Which country should be specializing in the production of glasses?
China
The country that has a comparative advantage in the production of the product should specialize in producing it.
Which country should be specializing in the production of toys?
Spain
The country that has a comparative advantage in the production of the product should specialize in producing it.
Which country should be exporting toys?
Spain
The country that has a comparative advantage in the production of the product should specialize in producing it and exporting it.
Which country should be exporting glasses?
China
The country that has a comparative advantage in the production of the product should specialize in producing and exporting it.
Suppose that Spain takes all of their workers to produce toys. How much of the product can they produce?
`100/4`
How many workers are need to produce one unit? How many can you produce with 100 workers?
Suppose that Spain takes all of their workers to produce glasses. How much of the product can they produce?
`100/12`
How many workers are need to produce one unit? How many can you produce with 100 workers?
Suppose that China takes all of their workers to produce toys. How much of the product can they produce?
`100/12`
How many workers are need to produce one unit? How many can you produce with 100 workers?
Suppose that China takes all of their workers to produce glasses. How much of the product can they produce?
`100/15`
How many workers are need to produce one unit? How many can you produce with 100 workers?
Box 1: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 2: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 3: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 4: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 5: Select the best answer
Box 6: Select the best answer
Box 7: Select the best answer
Box 8: Select the best answer
Box 9: Select the best answer
Box 10: Select the best answer
Box 11: Select the best answer
Box 12: Select the best answer
Box 13: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 14: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 15: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity
Box 16: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172 Enter DNE for Does Not Exist, oo for Infinity