Homework Help is Here – Start Your Trial Now!
Business
Economics
22. The United Kingdom is made up of several smaller countries that used to be independent. The largest is England and one of the smallest, Wales, became unified with England around 700 years ago. The land in most of England is relatively fertile and can be used to grow wheat or pasture sheep. Wales, on the other hand, is mountainous and it is hard to grow wheat or find good land on which to pasture sheep, although it can be done. The land costs of producing wheat and sheep are shown below. Wheat England Wales 5 acres/ton 10 acres/ton Sheep 2 acres/sheep 2.5 acres/sheep For simplicity suppose England has 20 acres and Wales has 10 acres. Now suppose that England conquers Wales and the king wants his economist, to plot out the production possibilities for his unified kingdom. Do not expect the PPF to be a straight line, so plot more than two points. It will be helpful to consider the different patterns of specialization below and plot the points. Fill in the table Production pattern England and Wales both use all land for sheep Label Sheep Wheat A 14 England and Wales both us all land for wheat England uses its land for wheat and Wales uses its land for sheep England uses its land for sheep and Wales uses its land for wheat D At point C how many sheep are produced? 23. (continued) Plot the points found and label them A, B, C and D as designated after filling in the table. 1 of them is not on the frontier because it doesn't follow comparative advantage. Connect the dots for the other 3 to get the piecewise linear PPF. Which point is not on the frontier? 24. (continued) If the combined nation plans to produce O sheep but is considering making 1 sheep, it should notice that the opportunity cost will be tons of wheat per sheep 25. (continued) If the combined nation plans to produce 5 sheep but is considering making 6 sheep, it should notice that the opportunity cost will be tons of wheat per sheep

22. The United Kingdom is made up of several smaller countries that used to be independent. The largest is England and one of the smallest, Wales, became unified with England around 700 years ago. The land in most of England is relatively fertile and can be used to grow wheat or pasture sheep. Wales, on the other hand, is mountainous and it is hard to grow wheat or find good land on which to pasture sheep, although it can be done. The land costs of producing wheat and sheep are shown below. Wheat England Wales 5 acres/ton 10 acres/ton Sheep 2 acres/sheep 2.5 acres/sheep For simplicity suppose England has 20 acres and Wales has 10 acres. Now suppose that England conquers Wales and the king wants his economist, to plot out the production possibilities for his unified kingdom. Do not expect the PPF to be a straight line, so plot more than two points. It will be helpful to consider the different patterns of specialization below and plot the points. Fill in the table Production pattern England and Wales both use all land for sheep Label Sheep Wheat A 14 England and Wales both us all land for wheat England uses its land for wheat and Wales uses its land for sheep England uses its land for sheep and Wales uses its land for wheat D At point C how many sheep are produced? 23. (continued) Plot the points found and label them A, B, C and D as designated after filling in the table. 1 of them is not on the frontier because it doesn't follow comparative advantage. Connect the dots for the other 3 to get the piecewise linear PPF. Which point is not on the frontier? 24. (continued) If the combined nation plans to produce O sheep but is considering making 1 sheep, it should notice that the opportunity cost will be tons of wheat per sheep 25. (continued) If the combined nation plans to produce 5 sheep but is considering making 6 sheep, it should notice that the opportunity cost will be tons of wheat per sheep

MACROECONOMICS
MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter3: The Fundamental Economic Problem: Scarcity And Choice
Section: Chapter Questions
Problem 4DQ
See similar textbooks
icon
Related questions
Question
22. The United Kingdom is made up of several smaller countries that used to be independent. The largest is England and one of the smallest, Wales, became unified with England around 700 years ago. The land in most of England is relatively fertile and can be used to grow wheat or pasture sheep. Wales, on the other hand, is mountainous and it is hard to grow wheat or find good land on which to pasture sheep, although it can be done. The land costs of producing wheat and sheep are shown below. Wheat 5 acres/ton 10 acres/ton Sheep 2 acres/sheep 2.5 acres/sheep England Wales For simplicity suppose England has 20 acres and Wales has 10 acres. Now suppose that England conquers Wales and the king wants his economist, to plot out the production possibilities for his unified kingdom. Do not expect the PPF to be a straight line, so plot more than two points. It will be helpful to consider the different patterns of specialization below and plot the points. Fill in the table Production pattern Label Sheep Wheat England and Wales both use all land for sheep A 14 England and Wales both us all land for wheat В England uses its land for C wheat and Wales uses its land for sheep England uses its land for sheep and Wales uses its D land for wheat At point C how many sheep are produced? 23. (continued) Plot the points found and label them A, B, C and D as designated after filling in the table. 1 of them is not on the frontier because it doesn't follow comparative advantage. Connect the dots for the other 3 to get the piecewise linear PPF. Which point is not on the frontier? 24. (continued) If the combined nation plans to produce O sheep but is considering making 1 sheep, it should notice that the opportunity cost will be tons of wheat per sheep 25. (continued) If the combined nation plans to produce 5 sheep but is considering making 6 sheep, it should notice that the opportunity cost will be tons of wheat per sheep
Transcribed Image Text:22. The United Kingdom is made up of several smaller countries that used to be independent. The largest is England and one of the smallest, Wales, became unified with England around 700 years ago. The land in most of England is relatively fertile and can be used to grow wheat or pasture sheep. Wales, on the other hand, is mountainous and it is hard to grow wheat or find good land on which to pasture sheep, although it can be done. The land costs of producing wheat and sheep are shown below. Wheat 5 acres/ton 10 acres/ton Sheep 2 acres/sheep 2.5 acres/sheep England Wales For simplicity suppose England has 20 acres and Wales has 10 acres. Now suppose that England conquers Wales and the king wants his economist, to plot out the production possibilities for his unified kingdom. Do not expect the PPF to be a straight line, so plot more than two points. It will be helpful to consider the different patterns of specialization below and plot the points. Fill in the table Production pattern Label Sheep Wheat England and Wales both use all land for sheep A 14 England and Wales both us all land for wheat В England uses its land for C wheat and Wales uses its land for sheep England uses its land for sheep and Wales uses its D land for wheat At point C how many sheep are produced? 23. (continued) Plot the points found and label them A, B, C and D as designated after filling in the table. 1 of them is not on the frontier because it doesn't follow comparative advantage. Connect the dots for the other 3 to get the piecewise linear PPF. Which point is not on the frontier? 24. (continued) If the combined nation plans to produce O sheep but is considering making 1 sheep, it should notice that the opportunity cost will be tons of wheat per sheep 25. (continued) If the combined nation plans to produce 5 sheep but is considering making 6 sheep, it should notice that the opportunity cost will be tons of wheat per sheep
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MACROECONOMICS
MACROECONOMICS
Economics
ISBN:
9781337794985
Author:
Baumol
Publisher:
CENGAGE L
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS