(a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis. 5 (b) Which country has the comparative advantage in food production? Which has the comparative advantage in drink production? (c) Draw the world supply of food relative to drinks (the world relative supply curve) (d) Suppose that the PF ood = $2/pound, and PDrinks = $5/gallon. Draw new PPFs for Home and Foreign after trade is allowed. How can we tell that trade is welfare improving in both countries?
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(a) Draw the PPF for Home and for Foreign (on separate graphs).
Put production of food...
Please help me to figure it out, thanks! 9. Use the information in the table below...
Please help me to figure it out, thanks!
9. Use the information in the table below to answer the following questions. Unit labor requirement Food 100 180 Home Foreign Drinks 500300 Suppose Home's labor supply is 1,000 hours, and Foreign's labor supply is 2,700 hours (a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis. (b) Which country has the comparative advantage in food production? Which has the comparative advantage in...
Please help me to figure it out, thanks 9. Use the information in the table below...
Please help me to figure it out, thanks
9. Use the information in the table below to answer the following questions. Unit labor requirement Food 100 180 Home Foreign Drinks 500300 Suppose Home's labor supply is 1,000 hours, and Foreign's labor supply is 2,700 hours (a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis. (b) Which country has the comparative advantage in food production? Which has the comparative advantage in...
9. Use the information in the table below to answer the following questions Production per unit...
9. Use the information in the table below to answer the following questions Production per unit of Labor Food 100 Home Foreign 180 300 Drinks 500 Suppose Home's labor supply is 1,000 hours, and Foreign's labor supply is 2,700 hours. (a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis.
3. Suppose that Home and Foreign are the only countries in the world and that labor...
3. Suppose that Home and Foreign are the only countries in the world and that labor is the only productive input. At Home, it requires 1 hours of labor to produce 4 Airplanes (A) and 1 hours of labor to produce 5 Bicycles (B). In Foreign, it requires 1 hour of labor to produce 1 Airplane (A) and 1 hour of labor to produce 2 Bicycles (B). Assume that consumers in each country consume the amounts identified in the following...
6. Suppose that both Home and Foreign move from autarky to a free-trade regime and the...
6. Suppose that both Home and Foreign move from autarky to a free-trade regime and the trade price of product X is 0.4Y. From the Hone perspective, the trade price is than the marginal cost of product X, which isSo, the Home economy under free trade. So, the X industry must A) smaller; 0.5Y; exit B) greater; 0.5Y; overtake C) smaller; 0.25Y; exit D) greater; 0.25Y; overtake 1. Again, suppose that both Home and Foreign move from autarky to a...
1a. Suppose that each worker in Home can produce 2 pound of cheese or 3 gallons...
1a. Suppose that each worker in Home can produce 2 pound of cheese or 3 gallons of wine. Assume that Home has 40 workers. a. Graph the production possibilities frontier (PPF) for Home? What is the no-trade relative price of cheese in Home? Why? b. Suppose that each worker in Foreign can produce 1 pounds of cheese or 2 gallons of wine. Assume that Foreign also has 40 workers. Graph the PPF for Foreign? What is the no-trade relative price...
Unit Labor Requirements Cloth Widgets Home 20 10 60 Foreign 30 11) Given the information in...
Unit Labor Requirements Cloth Widgets Home 20 10 60 Foreign 30 11) Given the information in the table above A) neither country has a comparative advantage in cloth B) Home has a comparative advantage in cloth. C) Foreign has a comparative advantage in cloth. D) Home has a comparative advantage in both cloth and widgets. E) neither country has a comparative advantage in widgets. 12) Given the information in the table above, if wages were to double in Home, then...
Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In...
Suppose Home has 300 units of labor. It can produce two goods, apples and bananas. In Home a worker can produce 3 apples or 5 bananas. a. Graph Home's PPF, with apples in the horizontal axis. b. What is the opportunity cost of apples? c. In the absence of trade – when Home is isolated ‐ what would the relative price be? d. Now suppose there is another country, Foreign, with a labor force of 200. In Foreign a worker...
10 ( 1JW al questions) 01. (20 marks) Assume a Ricardian model. Home needs 3 units...
10 ( 1JW al questions) 01. (20 marks) Assume a Ricardian model. Home needs 3 units of labour to pro food and 2 units of labour to produce a unit of cloth home needs 3 units of labour to produce a unit of units of labour to produce a unit of clothes. The foreign country needs 3 unit of labour to produce a unit of food and 1 unit of labou oduce a unit of food and 1 unit of...
Product Home F Foreign aLX = 0.5 at y-0.5 LX air = 2 Table 1: Labor...
Product Home F Foreign aLX = 0.5 at y-0.5 LX air = 2 Table 1: Labor hours per unit of outputs Bach oi these two economies is endowed with 500 labor hours (ie, L = L*-500). We were unable to transcribe this imagehas higher "relative labor 3. Relative to labor productivity in product Y, productivity" in product X A) Home B) Foreign C) Neither Home nor Foreign D) undertermined 4. Which of the following represents Home's production-possibility frontier 650 500...
Please help me to figure it out, thanks!
9. Use the information in the table below to answer the following questions. Unit labor requirement Food 100 180 Home Foreign Drinks 500300 Suppose Home's labor supply is 1,000 hours, and Foreign's labor supply is 2,700 hours (a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis. (b) Which country has the comparative advantage in food production? Which has the comparative advantage in...
Please help me to figure it out, thanks
9. Use the information in the table below to answer the following questions. Unit labor requirement Food 100 180 Home Foreign Drinks 500300 Suppose Home's labor supply is 1,000 hours, and Foreign's labor supply is 2,700 hours (a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis. (b) Which country has the comparative advantage in food production? Which has the comparative advantage in...
9. Use the information in the table below to answer the following questions Production per unit of Labor Food 100 Home Foreign 180 300 Drinks 500 Suppose Home's labor supply is 1,000 hours, and Foreign's labor supply is 2,700 hours. (a) Draw the PPF for Home and for Foreign (on separate graphs). Put production of food on the x-axis.
3. Suppose that Home and Foreign are the only countries in the world and that labor is the only productive input. At Home, it requires 1 hours of labor to produce 4 Airplanes (A) and 1 hours of labor to produce 5 Bicycles (B). In Foreign, it requires 1 hour of labor to produce 1 Airplane (A) and 1 hour of labor to produce 2 Bicycles (B). Assume that consumers in each country consume the amounts identified in the following...
6. Suppose that both Home and Foreign move from autarky to a free-trade regime and the trade price of product X is 0.4Y. From the Hone perspective, the trade price is than the marginal cost of product X, which isSo, the Home economy under free trade. So, the X industry must A) smaller; 0.5Y; exit B) greater; 0.5Y; overtake C) smaller; 0.25Y; exit D) greater; 0.25Y; overtake 1. Again, suppose that both Home and Foreign move from autarky to a...
Unit Labor Requirements Cloth Widgets Home 20 10 60 Foreign 30 11) Given the information in the table above A) neither country has a comparative advantage in cloth B) Home has a comparative advantage in cloth. C) Foreign has a comparative advantage in cloth. D) Home has a comparative advantage in both cloth and widgets. E) neither country has a comparative advantage in widgets. 12) Given the information in the table above, if wages were to double in Home, then...
10 ( 1JW al questions) 01. (20 marks) Assume a Ricardian model. Home needs 3 units of labour to pro food and 2 units of labour to produce a unit of cloth home needs 3 units of labour to produce a unit of units of labour to produce a unit of clothes. The foreign country needs 3 unit of labour to produce a unit of food and 1 unit of labou oduce a unit of food and 1 unit of...
Product Home F Foreign aLX = 0.5 at y-0.5 LX air = 2 Table 1: Labor hours per unit of outputs Bach oi these two economies is endowed with 500 labor hours (ie, L = L*-500). We were unable to transcribe this imagehas higher "relative labor 3. Relative to labor productivity in product Y, productivity" in product X A) Home B) Foreign C) Neither Home nor Foreign D) undertermined 4. Which of the following represents Home's production-possibility frontier 650 500...
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