The country of Uncoordinated requires 5 units of labor to produce one unit of corn and...
The country of Uncoordinated requires 5 units of labor to produce one unit of corn and 10 units of labor to produce one unit of housing. Uncoordinated has 100 total units of labor available. Uncoordinated has Leontief preferences (right-angle indifference curves) with the bend at equal shares of housing and corn.The country of Gifted requires 1 unit of labor to produce one unit of corn and 1 unit of labor to produce one unit of housing. Gifted has 10 units of labor available and Leontief preferences (right-angle indifference curves) with the bend at 2 units of corn for every unit of housing.a)Find the autarky levels of output for both countries.b)Identify which country has the comparative advantage in the production of each of the goods.c)Identify which country has the absolute advantage in the production of each of the goods.d)Develop a scheme of international trade that leaves both countries better off. In other words, show how specialization and trade can generate higher levels ofconsumption.e)Is the scheme developed in (d) the only possible welfare improving trade outcome? Why or why not?
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The country of Uncoordinated requires 5 units of labor to
produce one unit of corn and...
1. Suppose country A can produce 30 units of Corn per time period (if it specializes...
1. Suppose country A can produce 30 units of Corn per time period (if it specializes in Corn). Country A can produce 4 outfits per time period (if it specializes in outfits). If country B specializes in Corn, it can produce 40 units per time period. If country B specialized in Outfits, it can produce 3 outfits per time period. A has a comparative advantage in Corn. B has a comparative advantage in Outfits. neither country has a comparative advantage....
Suppose that: In Malaysia the unit labor requirement (ULR) to produce a pound of rice and a pencil are 1 and 2 hours of...
Suppose that: In Malaysia the unit labor requirement (ULR) to produce a pound of rice and a pencil are 1 and 2 hours of labor respectively; In Indonesia, the unit labor requirement to produce a pound of rice and a pencil are 2 and 3 hours respectively; each country has 10,000 hours of labor to allocate between the production of rice and pencils; and in autarky, Malaysia consumes 5,000 pounds of rice and 2,500 pencils. When trade occurs, the world...
Assume two countries Argentina and Brazil that produce two goods, corn and wine. Assume that land...
Assume two countries Argentina and Brazil that produce two goods, corn and wine. Assume that land is specific to corn, capital is specific to wine, and labor is free to move between the two industries. Assume that Brazil has a comparative advantage in corn, and Argentina has a comparative in wine. Brazil and Argentina sign a free trade agreement, and we want to study the consequences of this trade agreement. a) Is it possible that real wages move in opposite...
Consider two neighboring island countries called Dolorium and Content. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both
Consider two neighboring island countries called Dolorium and
Content. They each have 4 million labor hours available per week
that they can use to produce jeans, corn, or a combination of both.
The following table shows the number of jeans or corn that can be
produced using 1 hour of labor.CountryJeansCorn(Pairs per hour of labor)(Bushels per hour of labor)Dolorium416Content510Initially, suppose Content uses 1 million hours of labor per
week to produce jeans and 3 million hours per week to produce...
The table below outlines the possible tradeoffs of producing units of cloth and corn, using one...
The table below outlines the possible tradeoffs of producing units of cloth and corn, using one hour of labor input, for Country A and Country B. Country A Country B Units of Cloth Units of Corn Units of Cloth| Units of Corn 14 / 4 / 16 / 8 Country A has a comparative advantage in producing: A) cloth. B) neither cloth nor corn. C) corn.
Question 15 A country can produce either 25 pounds of fish or 7 bushels of corn....
Question 15 A country can produce either 25 pounds of fish or 7 bushels of corn. What is the opportunity cost of producing one bushel of corn? Enter a number rounded to two decimal places. Question 16 England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 30 scones per hour or 2 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 4 sweaters per hour. Who will produce...
Country A has 16,000 units of labor and can produce 2 goods, manufactures and food. A’s...
Country A has 16,000 units of labor and can produce 2 goods, manufactures and food. A’s producers take 2 units of labor to produce one unit of manufactures and 8 units to produce one unit of food. Country B has 36,000 units of labor and takes 6 units of labor to produce one unit of manufactures and 5 units to produce one unit of food. What is the price of manufactures in terms of food at which A and B...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only...
Consider a two countries, Portugal and England, that produce two goods, wine and cheese, with only one factor of production, Labor. In England, one unit of labor can produce 2 units of wine or 1 unit of cheese. In Portugal, one unit of labor can produce 3 units of wine or 1/2 of cheese. There are 100 units of labor in Portugal, and 100 in England. Countries share the same tastes, and there is perfect competition. 1) Fill in the...
Consider a world with two countries, Home and Foreign, both able to produce two goods: cloth and tablet computers. The p...
Consider a world with two countries, Home and Foreign, both able to produce two goods: cloth and tablet computers. The production of both goods uses capital and labor in fixed proportions, with the tablets industry using more capital per worker than the cloth industry. The units of each input needed to produce one unit output are given by: capital Labor Cloth 1 2 Tablets 2 1 Both countries have 150 units of capital available for production, but the Home country...
Assume that in country A, the unit labor requirement for producing good X is 100 hours,...
Assume that in country A, the unit labor requirement for producing good X is 100 hours, and the unit labor requirement for good Y is 20 hours. Meanwhile in country B, the unit labor requirement for producing good X is 80 hours and the unit labor requirement for good Y is 40 hours. Answer the following: Explain which country has an absolute advantage in each good. Explain which country has a comparative advantage in each good. Under the Theory of...
Suppose that: In Malaysia the unit labor requirement (ULR) to produce a pound of rice and a pencil are 1 and 2 hours of labor respectively; In Indonesia, the unit labor requirement to produce a pound of rice and a pencil are 2 and 3 hours respectively; each country has 10,000 hours of labor to allocate between the production of rice and pencils; and in autarky, Malaysia consumes 5,000 pounds of rice and 2,500 pencils. When trade occurs, the world...
The table below outlines the possible tradeoffs of producing units of cloth and corn, using one hour of labor input, for Country A and Country B. Country A Country B Units of Cloth Units of Corn Units of Cloth| Units of Corn 14 / 4 / 16 / 8 Country A has a comparative advantage in producing: A) cloth. B) neither cloth nor corn. C) corn.
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