Homework Answers
Option C.
- A specific factors model is a model that assumes that every sector of an economy which is assumed to have two sector's are said to produce goods and services with some specific factors of production.
- For example, for a sector, capital might be a specific factor of production used while in another sector labour might be the specific factor of production used.
- According to this model, when the price increases by a greater percentage, the nominal wage will also increase but the increment will be less than the price rise.
- Hence when the price increases by 10%, the nominal wage will increase by less than 10%.
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Use the specific factors model. There is an increase the price of the manufactured good by 10%. The nominal wage will O...
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)...
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
29) In the specific factors model, a 0% increase in the price of food accompanied by...
29) In the specific factors model, a 0% increase in the price of food accompanied by 5% increase in he price of cloth will cause wages to food to A) increase by more then 5%; increase; remain unchanged B) increase by less then 5%; increase; decrease C) remain constant; decrease; decrease D) increase by 5 % ; remain unchanged; remain unchanged E) remain constant; increase; increase , the production of cloth to and the production of В 30) Refer to...
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percent...
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased c. your real wage increase. If your real wage...
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...
In specific factors model the slope of the PPF or the opportunity cost of producing less of one good and more of the ot...
In specific factors model the slope of the PPF or the opportunity cost of producing less of one good and more of the other good is calculated by: O taking the difference of the marginal products of labor for the two goods. O taking the ratio of the marginal products of labor for the two goods. O taking the average of the marginal products of labor for the two goods. O taking the sum of the marginal products of labor...
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...
To maximize profit, a firm will hire workers when the in revenue from hiring an additional worker the worker's wage. O increase; is greater than O decrease; is less than or equal to O increase; i...
To maximize profit, a firm will hire workers when the in revenue from hiring an additional worker the worker's wage. O increase; is greater than O decrease; is less than or equal to O increase; is less than or equal to O decrease, is greater than
To maximize profit, a firm will hire workers when the in revenue from hiring an additional worker the worker's wage. O increase; is greater than O decrease; is less than or equal to O...
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...
29) In the specific factors model, a 0% increase in the price of food accompanied by 5% increase in he price of cloth will cause wages to food to A) increase by more then 5%; increase; remain unchanged B) increase by less then 5%; increase; decrease C) remain constant; decrease; decrease D) increase by 5 % ; remain unchanged; remain unchanged E) remain constant; increase; increase , the production of cloth to and the production of В 30) Refer to...
9:02 ร LTE 25. Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased c. your real wage increase. If your real wage...
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...
In specific factors model the slope of the PPF or the opportunity cost of producing less of one good and more of the other good is calculated by: O taking the difference of the marginal products of labor for the two goods. O taking the ratio of the marginal products of labor for the two goods. O taking the average of the marginal products of labor for the two goods. O taking the sum of the marginal products of labor...
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...
To maximize profit, a firm will hire workers when the in revenue from hiring an additional worker the worker's wage. O increase; is greater than O decrease; is less than or equal to O increase; is less than or equal to O decrease, is greater than
To maximize profit, a firm will hire workers when the in revenue from hiring an additional worker the worker's wage. O increase; is greater than O decrease; is less than or equal to O...
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...
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