Can You Think Like An Economist

Hank nominate forgather 6 coconuts or discover 12 slant gobbler keep gather 4 coconuts or catch 4 look forBased on how they divide up their day , Hank gathers 2 coconuts and catches 8 lean and tom gathers 1 coconut and catches 3 angle . So distributively day they gather a angle (8 by Hank 3 by tom turkeyIt is your task the answer the avocation questions1a . What is the luck hail in terms of weight that volition not be caught in for Tom to gather unmatched coconut ? The probability chat up is 1 weightb . What is the opportunity cost in terms of search that go away not be caught in for Hank to gather one coconut ? The opportunity cost is 2 angle (A reduction by 4 seek per day to sop up 2 coconuts2a . What is the opportunity cost in terms of coconuts that go away not be gathered in for Tom to catch one fish ? The opportunity cost is one coconutb . What is the opportunity cost in terms of coconuts that will not be gathered in for Hank to catch one fish ? The opportunity cost is one half coconut3a . Who has the relative advantage in aggregation coconuts ? wherefore ? Tom has the proportional advantage in multitude coconuts , due to the loss of fish faced when Tom gathers coconutsb . Who has the comparative advantage in detecting fish ? why ? Hank has the advantage in fish gathering as he can gather nearly terzetto propagation as many fish per day as Tom . In growth , the cost per fish is twice as lots as if Tom gathers coconuts4a . Who should delimit in gathering coconuts ? Why ? Though Hank is better at gathering coconuts than Tom , he is only 1 .

5 times to a greater extent productive in that area and is 3 times more(prenominal) productive in fishing Therefore , his talent lies in catching fish and Tom should gather coconutsb . Who should pin down in catching fish ? Why ? Hank can catch 3 times as many fish as Tom and therefore should catch fish all day5 . If Tom and Hank to each one specialize in the task in which they assimilate a comparative advantage , then what will be fish for a day ? Was anything gained through specialization ? If both specialize in the appropriate skill , Tom and Hank will consider 4 coconuts and 12 fish every day . With the head separated , they are gathering 3 coconuts and 11 fish . Cooperation garners them one extra coconut and one extra fish every day6 . If you could talk to Tom and Hank what would you tell them ? There is a net gain to the economy if the two work together as the gross dome stic product increases . In gain , because Hank cannot gather coconuts as quickly as he can fish and because Tom can do either every bit , coconuts have more value than fishBottom of Form...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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