Homework Answers
Ans- (A)
Note that price of 1 tomato = 3 soyabeans
Home's opportunity cost of producing 1 bushel of tomato is 3 bushels of soyabean which is equal to price so Home will produce both goods.
Foreign's opportunity cost of producing 1 bushel of tomato is 2 bushels of soyabean and it knows that when it trades it can get 3 bushels of soyabean in exchange of 1 bushel of tomato. So,it will produce only tomatoes.
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Consider two economies (Home and Foreign) that can produce either tomatoes or soy beans. Labor is...
Only the question a Consider two countries (Home and Foreign) that produce goods 1 (with labor...
Only the question a
Consider two countries (Home and Foreign) that produce goods 1 (with labor and capitalj and 2 twith labor and land) according to the production functions described in problems 2 and 3 Initially, both countries have the same supply of labor (100 units each), capital, and land The capital stock in Home then grows. This change shifts out both the production curve for good 1 as a function of labor employed (described in problem 2) and the...
3.1 There are two countries, the US and Canada. The two countries produce tomatoes and corn....
3.1 There are two countries, the US and Canada. The two countries produce tomatoes and corn. A US worker can produce 200 pounds of tomatoes or 50 bushels of corn per year. The US has 300 workers. Canadian workers can produce 160 pounds of tomatoes or 20 bushel of corn per year. Canada has 30 workers. a. Which country has an absolute advantage in produce tomatoes? In corn? b. Which country has a comparative advantage in produce tomatoes? In corn?...
Suppose (for simplicity) that the U.S. economy uses one resource – labor – to produce two...
Suppose (for simplicity) that the U.S. economy uses one resource
– labor – to produce two goods: soybeans and health
care. The U.S. has 100 million workers at
first. Each worker can produce either 10 bushels of
soybeans or 2 units of health care each day.
On the graph below, draw the nation’s production
possibilities frontier
Suppose the U.S. produces a total of 800 million bushels
of soybeans per day.
If the U.S. produces 800 million bushels of soybeans, how many
units...
Consider two large open economies, the home economy and the foreign economy. In both countries th...
Can someone please explain?
Consider two large open economies, the home economy and the foreign economy. In both countries the following relationships hold Domestic Foreign Desired consumption, Cd-320 + 0.4(Y-T)-200rw. Desired investment, 150 200* Output, Y = 1.000 Taxes, T 200 Government purchases. G 275 Fr4800.4(YFr To 300r. For 225 300 For1,500 For-300 For 300 a. What is the equilibrium interest rate in the international capital market?(Enter your response as a decimal rounded to three places.) What are the equilibrium...
3. Suppose that Home and Foreign are the only countries in the world and that labor...
3. Suppose that Home and Foreign are the only countries in the world and that labor is the only productive input. At Home, it requires 1 hours of labor to produce 4 Airplanes (A) and 1 hours of labor to produce 5 Bicycles (B). In Foreign, it requires 1 hour of labor to produce 1 Airplane (A) and 1 hour of labor to produce 2 Bicycles (B). Assume that consumers in each country consume the amounts identified in the following...
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...
P.S: (3）is the world relative price =3 There are two countries, Home and Foreign. The two...
P.S: (3）is the world relative price =3
There are two countries, Home and Foreign. The two countries can produce two goods, socks (S) and hats (H) using only labour. The labour stock in Home is L = 600 and the labour stock in Foreign is L* = 300. The unit labour requirements for socks and hats are as = 2 and au = 4 for Home and as = 1 and ay = 5 for Foreign. - 1. Assume that...
We have the following demand and supply curves for clothing for the home and foreign economies....
We have the following demand and supply curves for clothing for the home and foreign economies. Home Foreign Supply QC = -20 + 10P QC* = -20 + 20P* Demand DC = 100 - 10 P DC* = 100 - 20P* a. Compute the autarky price and quantities for both countries. b. Compute the world price and quantity traded under free trade. Also compute the quantities supplied and demanded for the home and foreign country individually. c. Draw two graphs,...
2. (Ricardian Model) Two agricultural economies, "Home and "Foreign" produce corın (C) and wheat (W). Home...
2. (Ricardian Model) Two agricultural economies, "Home and "Foreign" produce corın (C) and wheat (W). Home has an endowment of 200 fields, each of which can produce either 2 units of corn or 2 units of wheat. Foreign has an endowment of 300 fields, each of which can produce either 1 unit of con or 2 units of wheat. Consus in both economies have identical homothetic preferences represented by the utility function: (a) Draw the production possibility frontiers for both...
Increasing Opportunity Costs Exercise 1 Ireland and Scotland both produce potatoes and sausages. The table be...
Increasing Opportunity Costs Exercise 1 Ireland and Scotland both produce potatoes and sausages. The table be their production possibilities schedules Production Possibilities Schedules Ireland Scotland Potatoes (tons) Sausages (tons) 150 120 90 60 Potatoes (tons) Sausages (tons) Book 0 0 100 200 300 400 50 100 150 200 160 120 80 erences 30 200 250 40 500 0 0 a. If the two countries decided to combine their resources, what is the maximum amount of potatoes the two countries could...
Only the question a
Consider two countries (Home and Foreign) that produce goods 1 (with labor and capitalj and 2 twith labor and land) according to the production functions described in problems 2 and 3 Initially, both countries have the same supply of labor (100 units each), capital, and land The capital stock in Home then grows. This change shifts out both the production curve for good 1 as a function of labor employed (described in problem 2) and the...
Suppose (for simplicity) that the U.S. economy uses one resource
– labor – to produce two goods: soybeans and health
care. The U.S. has 100 million workers at
first. Each worker can produce either 10 bushels of
soybeans or 2 units of health care each day.
On the graph below, draw the nation’s production
possibilities frontier
Suppose the U.S. produces a total of 800 million bushels
of soybeans per day.
If the U.S. produces 800 million bushels of soybeans, how many
units...
Can someone please explain?
Consider two large open economies, the home economy and the foreign economy. In both countries the following relationships hold Domestic Foreign Desired consumption, Cd-320 + 0.4(Y-T)-200rw. Desired investment, 150 200* Output, Y = 1.000 Taxes, T 200 Government purchases. G 275 Fr4800.4(YFr To 300r. For 225 300 For1,500 For-300 For 300 a. What is the equilibrium interest rate in the international capital market?(Enter your response as a decimal rounded to three places.) What are the equilibrium...
3. Suppose that Home and Foreign are the only countries in the world and that labor is the only productive input. At Home, it requires 1 hours of labor to produce 4 Airplanes (A) and 1 hours of labor to produce 5 Bicycles (B). In Foreign, it requires 1 hour of labor to produce 1 Airplane (A) and 1 hour of labor to produce 2 Bicycles (B). Assume that consumers in each country consume the amounts identified in the following...
P.S: (3）is the world relative price =3
There are two countries, Home and Foreign. The two countries can produce two goods, socks (S) and hats (H) using only labour. The labour stock in Home is L = 600 and the labour stock in Foreign is L* = 300. The unit labour requirements for socks and hats are as = 2 and au = 4 for Home and as = 1 and ay = 5 for Foreign. - 1. Assume that...
2. (Ricardian Model) Two agricultural economies, "Home and "Foreign" produce corın (C) and wheat (W). Home has an endowment of 200 fields, each of which can produce either 2 units of corn or 2 units of wheat. Foreign has an endowment of 300 fields, each of which can produce either 1 unit of con or 2 units of wheat. Consus in both economies have identical homothetic preferences represented by the utility function: (a) Draw the production possibility frontiers for both...
Increasing Opportunity Costs Exercise 1 Ireland and Scotland both produce potatoes and sausages. The table be their production possibilities schedules Production Possibilities Schedules Ireland Scotland Potatoes (tons) Sausages (tons) 150 120 90 60 Potatoes (tons) Sausages (tons) Book 0 0 100 200 300 400 50 100 150 200 160 120 80 erences 30 200 250 40 500 0 0 a. If the two countries decided to combine their resources, what is the maximum amount of potatoes the two countries could...
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