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 in Case Babove refer to millions of bushels of wheat and millions of yards of cloth.
a) Plot the production frontiers of the United States and the United Kingdom.
b) What is the relative (autarky) price of wheat (i.e. Pw/Pc) in the U.S. and in the U.K.?
c) What is the relative (autarky) price of cloth (i.e. Pc/Pw) in the U.S. and the U.K?
Homework Answers
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1.
The table below (used in your previous
problem set) shows bushels of wheat and the...
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...
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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?
Can a country have comparative advantage even though it has an absolute disadvantage? Make up a numerical...
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mQuestion 16 0 12.5 pts U.S. UK Wheat 126 12 Cloth 6 18 The table above...
mQuestion 16 0 12.5 pts U.S. UK Wheat 126 12 Cloth 6 18 The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour). According to the classical theory of trade, which of the following is true? The United States will gain more from trade than the United Kingdom. (WRONG) There is no basis for trade between these countries. The United States has an absolute advantage in the production of cloth....
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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:
Only answer if you are a real economist, and sure about your answers . Because I’m...
Only answer if you are a real economist, and sure about your
answers . Because I’m sick of people posting random and waste my
questions credit !
Explain why that’s the point of question here . Explain and
give more details when you choice
1) The trade-to-GDP ratio for a nation that had S600 million in exports, $400 million in imports, and GDP of $2,000 million would be A) 0.1 B) 0.2 C) 0.5 D) -0.1 2) A relative measure...
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)...
Case B US UK Wheat 4 1 Cloth 3 2 Suppose that in Case B in...
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Practice Problem Canada and the US both produce wheat and lumber. Assuming Canada and the US...
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mQuestion 16 0 12.5 pts U.S. UK Wheat 126 12 Cloth 6 18 The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour). According to the classical theory of trade, which of the following is true? The United States will gain more from trade than the United Kingdom. (WRONG) There is no basis for trade between these countries. The United States has an absolute advantage in the production of cloth....
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:
Only answer if you are a real economist, and sure about your
answers . Because I’m sick of people posting random and waste my
questions credit !
Explain why that’s the point of question here . Explain and
give more details when you choice
1) The trade-to-GDP ratio for a nation that had S600 million in exports, $400 million in imports, and GDP of $2,000 million would be A) 0.1 B) 0.2 C) 0.5 D) -0.1 2) A relative measure...
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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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...
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