Sign In
Not register? Register Now!
Essay Available:
Pages:
3 pages/≈825 words
Sources:
3 Sources
Level:
APA
Subject:
Literature & Language
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 10.8
Topic:

ECON310: The Production Possibility Frontiers For Brazil (Essay Sample)

Instructions:

Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil can produce 100,000 units of clothing per year and 50,000 cans of soda. The United States can produce 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant. For this example, assume that the production possibility frontier (PPF) is a straight line for each country because no other data points are available or provided. Include a PPF graph for each country in your paper. Chapter 5 of the Suranovic text is a good reference for this task.
Complete the following:
What would be the production possibility frontiers for Brazil and the United States?
Without trade, the United States produces AND CONSUMES 32,500 units of clothing and 125,000 cans of soda.
Without trade, Brazil produces AND CONSUMES 50,000 units of clothing and 25,000 cans of soda.
Denote these points on each COUNTRY’s production possibility frontier.
Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?
To assist in your thinking and discussion, additional questions to consider include:
What is the labor-intensive good?
What is the Marginal Rate of Transformation impact?
What is the labor-abundant country?
What is the capital-abundant country?
Could trade help reduce poverty in Brazil and other developing countries?
Please submit your assignment.
For assistance with your assignment, please use your text, Web resources, and all course materials.

source..
Content:

ECON
Name:
Instructor:
Institution:
Date:
What would be the production possibility frontiers for Brazil and the United States?
The essence of a production possibility frontier is to basically illustrate and analyze the tradeoffs and hence the resultant opportunity costs of every good produced that come with the same (Kishore, 2014).So, using the data provided for the respective countries, the possibility frontier can clearly be illustrated.
Using what you have learned and any independent research you may conduct, which product should each country specialize in, and why?
In order to clearly compare and give some economic opinion about the specialty of each country in this case, it is important to introduce the concept of comparative as well as absolute advantage (Schumacher, 2012). As can be observed, the two countries clearly have some sort of strengths and weaknesses when it comes to the production of each good. The respective costs of production of each good in each of these two countries vary. When it comes to the production of clothing in the U.S, the cost is 32.5/12.5 which returns 0.26. For the same in Brazil, it is 50/25 which returns 2. With just these two results, it is evident that Brazil needs to focus much of its efforts in the production of clothing, while the U.S should look more at soda production.
Without trade, the PPF graphs for each of these countries is as indicated:
What is the labor-intensive good?
A labor intensive good is that which would call for the use of a lot of manpower or labor to produce. In this case, it is quite open and clear that clothing is the most labor intensive good. In the process of making clothing, there is the use of manp

...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Argumentative Essay On Lotte Shouldn’t Be Boycotted
    Description: Need to use thos, logos, pathos, rebuttals to write, and have to accord to the resources, it has to support the argument....
    4 pages/≈1100 words | 2 Sources | APA | Literature & Language | Essay |
  • World Civilizations II
    Description: Undergraduate Essay: World Civilizations II...
    1 page/≈550 words | 2 Sources | APA | Literature & Language | Essay |
  • Smithsonian Human origins-www.Humanorigins.si.edu
    Description: Undergraduate writing level 1 page Literature and Language Format Style English (U.S.) Essay. Smithsonian Human origins-www.Humanorigins.si.edu...
    1 page/≈275 words | 1 Source | APA | Literature & Language | Essay |
Need a Plagiarism Free Essay?
Submit your instructions!