ZuoTi.Pro
Question

Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following...

Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts)

b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the Foreign country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts)

c) What is the no-trade relative price of TVs in each country? (2 pts)

d) Predict the pattern of trade if the world relative price for televisions is PTV/PK = 2.5. (2 pts)

e) What has happened to the real wage for Home country workers? (Be specific) (2 pts)

Pleeaaasseeeee help ! Thanks!

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

ngder :- Sivren dotea 40 Marginal produc κ7/\ Hon e PPE Margi Product rOdu Totel labor o to Labor produces 16x2 one L Kiusi 30 PPF For forei MPL ove n HPLK3 So, Lo oorke con producelo 10 TV oreignPk The export and foreen iu import 구 Because free trade YelcHve Price 9- auu toxky Relasive price TN ne is (ower ul export T

0 0
Add a comment
Know the answer?
Add Answer to:
Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following...

    Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...

  • Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following...

    Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...

  • Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following...

    Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions. a) The Home Country is endowed with 10 workers and has the following marginal products: MPLTV = 2, MPLK = 4. Illustrate the Home country’s PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL*TV =1, MPL*K =3. Illustrate the...

  • MPLk=4 (part that was cut off) Assume that Home and Foreign produce 2 goods, High-Definition televisions...

    MPLk=4 (part that was cut off) Assume that Home and Foreign produce 2 goods, High-Definition televisions and kiwi fruit. Use the following information to answer the questions a) The Home Country is endowed with 10 workers and has the following marginal products: MPLv Illustrate the Home country's PPF, placing televisions on the x-axis. Fully label your graph. (2 pts) 2, MPL b) The Foreign Country is also endowed with 10 workers and has the following marginal products: MPL,-1, MPL*k 3....

  • Assume that Home and Foreign produce two goods, televisions and cars, and use the following infor...

    Assume that Home and Foreign produce two goods, televisions and cars, and use the following information to answer the questions. Suppose the world relative price of cars in the trade equilibrium is P/PTv-1. In the no-trade equilibrium: Home Country Foreign Country Wagery 12 MPLIV 2 Wagec MPL = ? Wage? MPL? Waget 6 MPL-1 TV TV Fill in the missing information in the table. What is the no-trade relative price of television in the Home country? What is the no-trade...

  • 7. Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the follo...

    7. Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions: In the No-Trade Equilibrium Home Foreign Wagerv = 12 Wagec = ? Wageiv=? Wagec = 6 MPLT=4 MPL = ? MPLiv=? MPL = 1 Prv=? Pc=4 Piv=8 P = ? a. What is the marginal product of labor for TVs and cars in Home? What is the no- trade relative price of TVs in Home? b. What is...

  • Assume that Home and Foreign produce two goods, TVs and cars, and use the information below...

    Assume that Home and Foreign produce two goods, TVs and cars, and use the information below to answer the following questions. No-Trade Equilibrium Home Foreign wageTV= 12 wageC= ? wage*TV = ? wage*C= 6 aLTV = 0.5 aLC = ? aLTV * = ? aLC* = 1 PTV = ? PC = 4 PTV = 3 PC = ? a. What is the unit labor requirement for cars in Home? b. What is the no-trade relative price of TVs in...

  • 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...

  • 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...

  • 1a. Suppose that each worker in Home can produce 2 pound of cheese or 3 gallons...

    1a. Suppose that each worker in Home can produce 2 pound of cheese or 3 gallons of wine. Assume that Home has 40 workers. a. Graph the production possibilities frontier (PPF) for Home? What is the no-trade relative price of cheese in Home? Why? b. Suppose that each worker in Foreign can produce 1 pounds of cheese or 2 gallons of wine. Assume that Foreign also has 40 workers. Graph the PPF for Foreign? What is the no-trade relative price...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT