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 19:50

The u.s. stock market has returned an average of about 9% per year since 1900. this return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year. if you invest $100,000 and you earn 6% a year on it, how much real purchasing power will you have in 30 years?

Answers: 2

Answer

Business, 22.06.2019 09:40

Catherine de bourgh has one child, anne, who is 18 years old at the end of the year. anne lived at home for seven months during the year before leaving home to attend state university for the rest of the year. during the year, anne earned $6,000 while working part time. catherine provided 80 percent of anne's support and anne provided the rest. which of the following statements regarding whether anne is catherine's qualifying child for the current year is correct? a.anne is a qualifying child of catherine.b.anne is not a qualifying child of catherine because she fails the gross income test.c.anne is not a qualifying child of catherine because she fails the residence test.d.anne is not a qualifying child of catherine because she fails the support test.

Answers: 2

Answer

Business, 23.06.2019 00:30

Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 20 years. assume you purchase a bond that costs $25. a. what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. if you purchased the bond for $25 in 2017 at the then current interest rate of .27 percent year, how much would the bond be worth in 2027? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. in 2027, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2037. what annual rate of return will you earn over the last 10 years? (do not

Answers: 3

Answer

Business, 23.06.2019 05:30

When conducting a swot analysis, information about turnover, profit margins, and staff quality can be used to identify:

Answers: 1

Answer

You know the right answer?

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

Questions