Home has 1200 units of labor available. It can produce two goods, apples and bananas. The...
Home has 1200 units of labor available. It can produce two goods, apples and bananas. The labor productivity in apple production is 1/3 apples per unit of labor, while in banana production it is 1/2 bananas per unit of labor.
- Graph Home’s production possibility frontier with apples on the horizontal axis and bananas on the vertical axis.
- What is the opportunity cost of apples in terms of bananas in Home?
- In the absence of trade, what would the price of apples in terms of bananas be in Home? Why?
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Home has 1200 units of labor
available. It can produce two goods, apples and bananas. The...
3. Home has 1.200 units of labor available. It can produce two goods, apples and bananas....
3. Home has 1.200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3. while in banana production it is 2. Foreign has 800 units of labor available. Foreign's unit labor requirement in apple production is 5. while in banana production it is 1. a Graph the production possibility frontier for Home and the production possibility frontier for Foreign Please put Apples on the y axis. Now suppose world...
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...
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...
The "Home" country has 1200 units of labor at its disposal. It can produce two goods:...
The "Home" country has 1200 units of labor at its disposal. It can produce two goods: apples and bananas. To produce 1 kg of apples, 3 units of labor are required, for 1 kg of bananas, 2 units of labor are required. a) Graphically represent the production options curve of Home. b) What is the opportunity cost for the Home of apples in terms of bananas? c) In the absence of trade, what will be the price of apples in...
00:22 HB $BA (International Economics) The Ricardian Model: Trade Pattern Home has 1,200 units of labor...
00:22 HB $BA (International Economics) The Ricardian Model: Trade Pattern Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. a. What is the opportunity cost of apples in terms of bananas in Home? b. What...
5. Assume that the economy of Fruitland can produce two goods, apples (A) and bananas (B)....
5. Assume that the economy of Fruitland can produce two goods, apples (A) and bananas (B). The production of one apple requires one unit of labor (L) and two units of capital (K). One banana requires two units of labor and one unit of capital. Fruitland is endowed with 600 units of labor and 600 units of capital. a. Draw the production possibilities frontier (curve) for Fruitland. Put apples (A) on the vertical axis. (HINT: For every 20 apples, determine...
Relative price of apples Pa/Pb There are two countries Home and Foreign. Home has 1,200 units...
Relative price of apples Pa/Pb There are two countries Home and Foreign. Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas =...
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour...
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour as the sole production factor. Home and Foreign have, respectively, 2400 and 1600 units of labour available and the unit labour requirements in the production of both goods are as shown in the following table: Home Foreign Apple 6 hours 10 hours Bananas 4 hours 2 hours 1. Construct the world relative supply curve and graph the relative demand curve along with the relative...
The Ricardian Model I Consider two countries, Brazil and Italy and two goods, bananas and apples....
The Ricardian Model I Consider two countries, Brazil and Italy and two goods, bananas and apples. In Brazil the number of working hours necessary to produce one kilo of apples and bananas is respectively equal to 3 and 2. In Italy the number of working hours necessary to produce one kilo of apples and bananas is instead equal to respectively 5 and 1. The labor supply in Brazil is equal to 1200 workers, while in Italy it is equal to...
Question 12 State the Heckscher-Ohlin Theorem. Suppose there are two countries, USA and Germany. USA is...
Question 12 State the Heckscher-Ohlin Theorem. Suppose there are two countries, USA and Germany. USA is regarded as the home country and Germany is the foreign country. USA has 100 units of labor available and Germany has 80 units of labor. Both countries can produce only two goods, airplanes and cars. The output per hour of labor in the production of airplanes in the USA is 12, while in car production the output per hour of labor is 6. In...
3. Home has 1.200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3. while in banana production it is 2. Foreign has 800 units of labor available. Foreign's unit labor requirement in apple production is 5. while in banana production it is 1. a Graph the production possibility frontier for Home and the production possibility frontier for Foreign Please put Apples on the y axis. Now suppose world...
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...
00:22 HB $BA (International Economics) The Ricardian Model: Trade Pattern Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. a. What is the opportunity cost of apples in terms of bananas in Home? b. What...
Relative price of apples Pa/Pb There are two countries Home and Foreign. Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas =...
Consider two countries Home and Foreign that can produce two goods, apples and bananas, using labour as the sole production factor. Home and Foreign have, respectively, 2400 and 1600 units of labour available and the unit labour requirements in the production of both goods are as shown in the following table: Home Foreign Apple 6 hours 10 hours Bananas 4 hours 2 hours 1. Construct the world relative supply curve and graph the relative demand curve along with the relative...
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