econ question 2 pages : Coursescholars

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  1. Spain can produce 125 barrels of wine or 250 bottles of olive oil per day. Italy can produce 240 barrels of wine or 300 bottles of olive oil per day.
    1. Who has the absolute advantage in producing wine? Who has the absolute advantage in producing olive oil?
    2. What is Spain’s opportunity cost of producing one barrel of wine? What is Spain’s opportunity cost of producing one bottle of olive oil?
    3. What is Italy’s opportunity cost of producing one barrel of wine? What is Italy’s opportunity cost of producing one bottle of olive oil?
    4. Who has the comparative advantage in producing wine? Who has the comparative advantage in producing olive oil?
  2. A person invest $10,000 into an account that earns 6% in interest over 20 years.
  3. How much will this person make if the account earns simple interest?
  4. How much will this person make if the account earns compound interest?
  5. Do you think super PACs benefit society or make things worse? Explain.

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