respectively. [Here you have to use the CORREL command in Excel]. DO NOT ATTACH YOUR DATA...
Leturer: Assoc. Prof Bigshan Karbay respectively. [Here you have to use the CORREL command in Excel)l DO NOT ATTACH YOUR DATA. TECHNI For technical analysis, you need to follow Step 4 Step 4. In order to conjecture the circumstances in these two countries under autarky rent (when there is no trade), consider the following hypothetical scenario based on Ricardian model. Assume throughout that those two countries are the only two countries in the world, at least for purposes of trade....
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. 1. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs. 2. Who has the comparative advantage in the production of shirts? What about for computers? 3. If these countries were open to...
Problem 1 A country (”Home”) is populated with 300 workers who produce either food (F) and/or clothing (C). Each food worker produces 6 units of food and each clothing worker produces 3 units of clothing. The preferences of the consumers over food and clothing are represented by the utility function: u(DF , DC) = (DF ) 2/3 (DC) 1/3 1) Assuming that at the optimum, consumers set their marginal rate of substitution, MRSDF ,DC , to the relative price, i.e.,...
(a) In which product does country H have the absolute advantage over country F? According to Smith’s theory, which product should country H export? In which product does country H have the comparative advantage over country F? According to Ricardo’s theory, which product should country H export? (b) Specify the production possibility curve (PPC) in country H. Calculate the production and consumption allocation of country H in the no-trade case. Take fruits as the unit of account. How much is...
need help with d and e 1. Comparative Advantage (1.5 marks) Analyze the following two countries. In one day in Germany, it takes 24 workers to produce an airplane and 6 workers to produce a boat. In one day in France, it takes 8 workers to produce an airplane and 4 workers to produce a boat. Both countries have 48 workers available each day. Draw the PPF of each country for one day's worth of production. Use a separate graph...
ANSWER A, B, C, D & E. (a) In which product does country H have the absolute advantage over country F? According to Smith’s theory, which product should country H export? In which product does country H have the comparative advantage over country F? According to Ricardo’s theory, which product should country H export? (b) Specify the production possibility curve (PPC) in country H. Calculate the production and consumption allocation of country H in the no-trade case. Take fruits as...
Consider two countries that produce cloth and widgets with labour as the unique production factor using a linear technology. Given the following information: Unit Produced by One Worker/Hour Cloth Widgets Home 200 400 Foreign 120 60 i. What is the opportunity cost of cloth in terms of widgets for the Home country? For the Foreign country? (5 points) ii. In which good does the Home country have comparative advantage? Why? (5 points) ii. Assume that on the world market one...
1. Do you agree or disagree with the following statements a. Balanced trade is the difference between exports and imports b. If country A can out produce country B, then country A has no reason to trade c. Every country in the world experiences free trade d. There is no connection between Foreign direct investment and trade flows e. An accurate way to measure imports is to assign the value of a final good 2. Trade distortion effects increase estimates...
Need help for these to question please. 3- Use the 3-step process to sketch what happens to the market of olive oil if 2- The price of canola oil decreases b- Palm oil is recently revealed by a study to be extremely high in saturated fat linked to heart disease. C- A drought destroys the olive crop d- The average income of customers increases - Suppose both the demand for olive oil and the supply of olive oil decline by...
Thank you so much. Heckscher-Ohlin Model 2. There are two countries, Home and Foreign. There are two goods: beer (6) and corn (C), which are produced in both countries using capital (K) and labor (L). In both countries, it takes 2 units of labor and 1 unit of capital to make beer (a Lb = 2, akb = 1); and it takes 5 units of labor and 5 units of capital to make corn (ale = 5, ako = 5)....