In the specific factors model, assume that the price of agricultural (land-using, i.e., good 2) good...
In the specific factors model, assume that the price of agricultural (land-using, i.e., good 2) good decreases exogenously while the price of manufactured (capital-using, i.e., good 1) good is unchanged.
Arrange the following terms in order of their magnitude:
- change in rental rate of land
- change in rental rate of capital
- change in price of good 1
- change in price of good 2
- change in wage
Homework Answers
Order of given terms as per magnitude-----
Change in price of good 2
Change in rental rate of land
Change in wage
Change in rental rate of capital
Change in price of good 1
Add Answer to:
In the specific factors model, assume that the price of
agricultural (land-using, i.e., good 2) good...
4. In the specific-factors model, assume that the price of agricultural goods decreases while the price...
4. In the specific-factors model, assume that the price of agricultural goods decreases while the price of manufactured goods is unchanged in the HOME country (APAPA 0 and APMPM 0). HOME country exports the manufacturing goods. a. Based on the prediction of the specific-factors model, who (The owner of capital or owner of land) is better off? b. Arrange the following terms in ascending order (Please show the steps clearly): APM PM APAPA ARK RK ARTRT AWIW (A diagram like...
4. In the specific-factors model, assume that the price of agricultural goods decreases while the price...
4. In the specific-factors model, assume that the price of agricultural goods decreases while the price of manufactured goods is unchanged in the HOME country (APA/P40 and AP MPM= 0). HOME country exports the manufacturing goods. a. Based on the prediction of the specific-factors model, who (The owner of capital or owner of land) is better off? b. Arrange the following terms in ascending order (Please show the steps clearly): ΔΡΑ/ΡΑ APMPM ART/RT ARK/Rk AW/W (A diagram like Figure 3.5...
2. Specifie-factors model Suppose that land is specific to com, capital is specific to automobiles, labor is mobile...
2. Specifie-factors model Suppose that land is specific to com, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn: Sales revenue = 200; Payments to labor = 40; Payments to land - 160 Suppose price of corn increases by 20%, the price of automobiles increases by 5%, and the wage increases by 10%. a. The relative price of...
1.Consider China that produces manufacturing and agricultural products. Assume that land is a factor used specifically...
1.Consider China that produces manufacturing and agricultural products. Assume that land is a factor used specifically in the agricultural sector, and capital is used in manufacturing sector only. If the price of agricultural products on the world market decreases, rent in which sector will increase the most? A.agriculture B.manufacturing C.both will lose D.nominal rent increase in agriculture but real rent not change 2.If in the specific factor model the prices of both manufactured and agricultural products decrease, then A.China fully...
Part II. The Specific-Factors Model 1. Assume under the Specific-Factors Model, home country export manufacturing goods...
Part II. The Specific-Factors Model 1. Assume under the Specific-Factors Model, home country export manufacturing goods to foreign country. Use the following information to answer the questions below: Manufacturing: Sales revenue Pm x Qm = 150 Payments to labor = W x Lm = 100 Payments to capital = Rkx K = 50 Sales revenue Pax Qa 150 Payments to labor W x La 50 Agriculture: Rt x T 100 Payments to land Holding the price of agriculture constant, suppose...
Specific Factor Model 3. Specific factor model a. Why is the specific-factors model referred to as...
Specific Factor Model
3. Specific factor model a. Why is the specific-factors model referred to as a short run model? b. An economy can produce good 1 using labour and captal and good 2 using labour and land. The total supply of labour is 100 units. Given the supply of capital, the output of the two goods depend on labour input as follows: Labor Input to GoodI Labor Input to Good 2 Output of Good 2 0.0 39.8 52.5 61.8...
In the two-sector (manufacturing and agriculture) specific-factors model, an increase in the price of the manufactured...
In the two-sector (manufacturing and agriculture) specific-factors model, an increase in the price of the manufactured good will cause: A) a decrease in nominal wages in both the agricultural and manufacturing sectors. B) an increase in real wages in both the agricultural and manufacturing sectors. C) an increase in both nominal and real wages in both the agricultural and manufacturing sectors. D) an increase in nominal wages in both the agricultural and manufacturing sectors. Which statement below is correct? A)...
Use the specific factors model. There is an increase the price of the manufactured good by 10%. The nominal wage will O...
Use the specific factors model. There is an increase the price of the manufactured good by 10%. The nominal wage will O Increase by 10%. O Decrease. O Increase by less than 10%. O Increase by more than 10%.
Think about an extension of the specific-factors model, in which, in addition to their wage, labour...
Think about an extension of the specific-factors model, in which, in addition to their wage, labour also earns some part of the rental on specific factor in their industry, i.e., farmers who own their own land and manufacturing workers who salary includes a profit-based bonus. Discuss how this extension affects the conclusion of the model. *This is not about the regular ambiguous nature of the mobile factor. The question is asking if labour was earning income from capital as well...
in the specific factors model, suppose that the price for food increased by 5% and the...
in the specific factors model, suppose that the price for food increased by 5% and the price of cloth increased by 10%. explain the effects on labor allocation and production. also, explain the welfare effect on labor, capital and land owners. assume that land is specific to food production, while capital is specific to cloth production.
4. In the specific-factors model, assume that the price of agricultural goods decreases while the price of manufactured goods is unchanged in the HOME country (APAPA 0 and APMPM 0). HOME country exports the manufacturing goods. a. Based on the prediction of the specific-factors model, who (The owner of capital or owner of land) is better off? b. Arrange the following terms in ascending order (Please show the steps clearly): APM PM APAPA ARK RK ARTRT AWIW (A diagram like...
4. In the specific-factors model, assume that the price of agricultural goods decreases while the price of manufactured goods is unchanged in the HOME country (APA/P40 and AP MPM= 0). HOME country exports the manufacturing goods. a. Based on the prediction of the specific-factors model, who (The owner of capital or owner of land) is better off? b. Arrange the following terms in ascending order (Please show the steps clearly): ΔΡΑ/ΡΑ APMPM ART/RT ARK/Rk AW/W (A diagram like Figure 3.5...
2. Specifie-factors model Suppose that land is specific to com, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows: Automobiles: Sales revenue = 200; Payments to labor = 100; Payments to capital = 100 Corn: Sales revenue = 200; Payments to labor = 40; Payments to land - 160 Suppose price of corn increases by 20%, the price of automobiles increases by 5%, and the wage increases by 10%. a. The relative price of...
Part II. The Specific-Factors Model 1. Assume under the Specific-Factors Model, home country export manufacturing goods to foreign country. Use the following information to answer the questions below: Manufacturing: Sales revenue Pm x Qm = 150 Payments to labor = W x Lm = 100 Payments to capital = Rkx K = 50 Sales revenue Pax Qa 150 Payments to labor W x La 50 Agriculture: Rt x T 100 Payments to land Holding the price of agriculture constant, suppose...
Specific Factor Model
3. Specific factor model a. Why is the specific-factors model referred to as a short run model? b. An economy can produce good 1 using labour and captal and good 2 using labour and land. The total supply of labour is 100 units. Given the supply of capital, the output of the two goods depend on labour input as follows: Labor Input to GoodI Labor Input to Good 2 Output of Good 2 0.0 39.8 52.5 61.8...
Use the specific factors model. There is an increase the price of the manufactured good by 10%. The nominal wage will O Increase by 10%. O Decrease. O Increase by less than 10%. O Increase by more than 10%.
Most questions answered within 3 hours.
-
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 10 minutes ago -
Sapphire Aerospace operates 52 weeks per year, and its cost of
goods sold last year was...
asked 13 minutes ago -
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 9 minutes ago -
Create ER Model
Assets are resources that are used in CMS to display content.
Each asset...
asked 8 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 13 minutes ago -
For each the following molecules draw the best possible
structure based on formal charges for each...
asked 14 minutes ago -
A proton moves in the plane of this paper toward the top of the
page. A...
asked 23 minutes ago -
different divisions differing lines of business use
different costs of capital because their cost of equity...
asked 19 minutes ago -
Give an algorithm to determine whether or not the elements
of
an array of integers are...
asked 27 minutes ago -
. Gravimetric analysis. The gravimetric analysis that we will
perform in lab occurs according to the...
asked 45 minutes ago -
Learning curve problem:
A company was ordered to make 6 custom made parts. the labor
costs...
asked 42 minutes ago -
When you don’t recall operator precedences you can Guess
Experiment with the compiler Look in a...
asked 46 minutes ago