One unit of Cloth costs 3 units of wheat in the U.S. and 2 units of...
One unit of Cloth costs 3 units of wheat in the U.S. and 2 units of wheat in the U.K. Therefore
| a. |
Cloth are cheaper (in terms of wheat) in the U.S. |
|
| b. |
Cloth are cheaper in the U.K. |
|
| c. |
Wheat is cheaper in the U.S. |
|
| d. |
Wheat will have the same price as Cloth |
Homework Answers
As one unit of cloth costs 3 units of wheat in the US and 2 units is wheat in the UK, clothes are cheaper in the UK. and Wheat will be cheaper in the US.
The answer is "A". Cothes are cheaper in the US in terms of wheat.
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One unit of Cloth costs 3 units of wheat in the U.S. and 2 units
of...
U.S. U.K. Wheat (bushels/ labor-hour) 4 2 Cloth (yards/ labor- hour) 2 1 a. express the...
U.S. U.K. Wheat (bushels/ labor-hour) 4 2 Cloth (yards/ labor- hour) 2 1 a. express the cost of producing wheat and cloth in the U.S. and in the U.K. in terms of labor content b. find Pc/Pw for both the U.S. and the U.K. in the absence of trade c. express the limits for mutually advantageous trade in terms of Pc/Pw. What does this result indicate?
24. Table 2 U.S. U.K Wheat/hour 6 1 Cloth/hour 2 With reference to table 2 above,...
24. Table 2 U.S. U.K Wheat/hour 6 1 Cloth/hour 2 With reference to table 2 above, let the wage be $6 in the U.S and £1.8 in the U.K. If the exchange rate is £1=$3, Pw and Pc in the U.S will respectively be: a. Pw=$1 and Pc =$2 b. Pw=$4 and Pc=$0.5 c. Pw=$3 and Pc =$.58 d. None of the above Answer:
The table below shows bushels of wheat and the yards of cloth that the United States...
The table below shows bushels of wheat and the yards of cloth that the United States and the United Kingdom can produce with one hour of labor time under four different hypothetical situations. Case A Case B Case C Case D US UK US UK US UK US UK Wheat (bushels/man-hour) 4 1 4 1 4 1 4 2 Cloth (yards/man-hour) 1 2 3 2 2 2 2 1 (In this question, don’t be surprised if you cannot figure out...
1. The table below (used in your previous problem set) shows bushels of wheat and the...
1. The table below (used in your previous problem set) shows bushels of wheat and the yards of cloth that the United States and the United Kingdom can produce with one hour of labor time under four different hypothetical situations. Case A Case B Case C Case D US UK US UK US UK US UK Wheat (bushels/man-hour) 4 1 4 1 4 1 4 2 Cloth (yards/man-hour) 1 2 3 2 2 2 2 1 Assume that the data...
ishes, (b) increases, (e) remains unehanged, l Problems THE HECKSCHER-OHLIN THEORY 3.1 (a) Identify the conditions...
ishes, (b) increases, (e) remains unehanged, l Problems THE HECKSCHER-OHLIN THEORY 3.1 (a) Identify the conditions that may give rise to trade between two nations. (b) What are some of the assumptions on which the Heckscher-Ohlin theory of trade is based? (c) What does this theory say about the pattern of trade and effect of trade on factor prices? uppose that (1) the capital-labor ratio (Le , KL) to produce l unit of wheat is greater than theKL produce I...
Case B US UK Wheat 4 1 Cloth 3 2 Suppose that in Case B in...
Case B US UK Wheat 4 1 Cloth 3 2 Suppose that in Case B in the above tables, the US exchanges 4W for 4C with the UK. a. How much does the US gain in terms of C? b. How much does the UK gain in terms of C? c. What is the range for mutually beneficial trade? d. How much would each nation gain in terms of C if they exchanged 4W for 6C instead?
A farmer can grow wheat or corn. The unit profits for a bushel of each are the same. To grow wheat (W) and corn (C...
A farmer can grow wheat or corn. The unit profits for a bushel of each are the same. To grow wheat (W) and corn (C), the farmer requires four input factors: Capital (K), land (L), A-Fertilizer (A), and B-fertilizer (B). The production of one bushel of corn requires two units of capital and the production of one unit of wheat four units of capital. The farmer has 32 units of capital available. The production of one bushel of corn requires...
Question 1: Exhibit 1 - Production possibilities curves for U.S. and Mexico? Cloth (tons per day)...
Question 1: Exhibit 1 - Production possibilities curves for U.S. and Mexico? Cloth (tons per day) Cloth 10 (tons per day) Prus. 0 20 0 0 40 60 80 100 Wheat (tons per day) 0 0 0 100 Wheat (tons per day) Use the Production Possibilities Curves for U.S. and Mexico to determine i. In what commodity do United States has a comparative advantage over Mexico? il. In what commodity do Mexico has a comparative advantage over United States? iii....
Questions 1-30 refer to the following problem: A farmer can grow wheat or corn. The unit profits for a bushel of...
Questions 1-30 refer to the following problem: A farmer can grow wheat or corn. The unit profits for a bushel of each are the same. To grow wheat (W) and corn (C), the farmer requires four input factors: Capital (K), land (L), A-Fertilizer (A), and B-fertilizer (B). The production of one bushel of corn requires two units of capital and the production of one unit of wheat four units of capital. The farmer has 32 units of capital available. The...
E and F please 1. (16 points) Answer the following questions based on the information in...
E and F please
1. (16 points) Answer the following questions based on the information in the table below. U.S.U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 6 6 A. (2 points) Which country has an absolute advantage in wheat? Which country has an absolute advantage in cloth? Can mutually beneficial trade take place between U.S. and U.K. according to the law of absolute advantage? B. (2 points) What is the opportunity cost of wheat in each country? c. (2 points)...
24. Table 2 U.S. U.K Wheat/hour 6 1 Cloth/hour 2 With reference to table 2 above, let the wage be $6 in the U.S and £1.8 in the U.K. If the exchange rate is £1=$3, Pw and Pc in the U.S will respectively be: a. Pw=$1 and Pc =$2 b. Pw=$4 and Pc=$0.5 c. Pw=$3 and Pc =$.58 d. None of the above Answer:
ishes, (b) increases, (e) remains unehanged, l Problems THE HECKSCHER-OHLIN THEORY 3.1 (a) Identify the conditions that may give rise to trade between two nations. (b) What are some of the assumptions on which the Heckscher-Ohlin theory of trade is based? (c) What does this theory say about the pattern of trade and effect of trade on factor prices? uppose that (1) the capital-labor ratio (Le , KL) to produce l unit of wheat is greater than theKL produce I...
A farmer can grow wheat or corn. The unit profits for a bushel of each are the same. To grow wheat (W) and corn (C), the farmer requires four input factors: Capital (K), land (L), A-Fertilizer (A), and B-fertilizer (B). The production of one bushel of corn requires two units of capital and the production of one unit of wheat four units of capital. The farmer has 32 units of capital available. The production of one bushel of corn requires...
Question 1: Exhibit 1 - Production possibilities curves for U.S. and Mexico? Cloth (tons per day) Cloth 10 (tons per day) Prus. 0 20 0 0 40 60 80 100 Wheat (tons per day) 0 0 0 100 Wheat (tons per day) Use the Production Possibilities Curves for U.S. and Mexico to determine i. In what commodity do United States has a comparative advantage over Mexico? il. In what commodity do Mexico has a comparative advantage over United States? iii....
Questions 1-30 refer to the following problem: A farmer can grow wheat or corn. The unit profits for a bushel of each are the same. To grow wheat (W) and corn (C), the farmer requires four input factors: Capital (K), land (L), A-Fertilizer (A), and B-fertilizer (B). The production of one bushel of corn requires two units of capital and the production of one unit of wheat four units of capital. The farmer has 32 units of capital available. The...
E and F please
1. (16 points) Answer the following questions based on the information in the table below. U.S.U.K. Wheat (bushels/hr) 9 3 Cloth (yards/hr) 6 6 A. (2 points) Which country has an absolute advantage in wheat? Which country has an absolute advantage in cloth? Can mutually beneficial trade take place between U.S. and U.K. according to the law of absolute advantage? B. (2 points) What is the opportunity cost of wheat in each country? c. (2 points)...
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