Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

problem 1) Assume that labor is the only productive input and there are 20,000 hours of labor available in country A.  Five hours of labor are needed to produce 1 skirt, as 4 hours are required to produce 1 t-shirt. 

a) Illustrate country A’s PPF (with skirts on the x-axis).

b) C that the free trade relative price of skirts is 2, Pskirts/Pshirts=2.  Which good will country A export?  How many skirts and t-shirts will country A produce once trade is allowed?  Demonstrate the production point as well as the consumption possibilities frontier on diagram you drew in part a).

problem 2) Data on the factor endowments of two countries, A and B is given below:

                                                                   Countries
                                                                 A              B
Labor Force (millions of workers)                  45             20
Capital Stock (thousands of machines)         15              10

a) Determine the country which is relatively capital abundant?  Which country is relatively labor abundant? Describe

b) Assume that good S is capital intensive relative to good T. Which country will have comparative advantage in production of S? describe.

problem 3) Mention the factor price equalization theorem. Some have argued that factor price equalization theorem implies that U.S. wages should fall to level of those found in the least developed countries of the world. Comment on the validity of this statement.

problem 4) What is Leontief Paradox? Name three of the attempted reconciliations of Leontief’s findings. describe one of them.

problem 5) Describe different reasons why we might expect countries to engage in intraindustry trade.

problem 6) Assume that domestic demand and supply for shoes in a small open economy are given by

P = 100 - 2Q      (demand)    where P denotes price and Q denotes quantity.
P =   4 + Q        (supply)

a) What are the autarky price of shoes and quantity produced? Show them on demand and supply diagram for shoes.

b) prepare down the levels of domestic production, consumption, and imports if the world price is 10?  Show them on the demand and supply diagram for shoes.

c) Use the diagram you drew in part b) to prove that country is better off with free trade.

d) What are the levels of domestic production, consumption, imports, and government revenue if this country were to impose a specific tariff of $2?   

e) In a separate diagram, demonstrate the effect of import tariff in part d) on the society’s net welfare i.e. demonstrate the net welfare change of a move from free trade to trade with tariff. 

f) Determine the deadweight cost of tariff in part d) (if there is any)?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M97359

Have any Question? 


Related Questions in Microeconomics

Iowa elevatorsresponses will be in a compact format the

Iowa Elevators Responses will be in a compact format. The content of the papers should not exceed three pages in length, excluding the title page, executive summary, or any references. Title Page: Executive Summary: Give ...

Assignmentin this assignment you will discuss the role of

Assignment In this assignment, you will discuss the role of entrepreneurship in improving the economic condition of countries and individuals and understand the manner in which this perception has spread around the world ...

Assignmentquestion a daoism amp confucianism as fisher

Assignment Question A: DAOISM & CONFUCIANISM. As Fisher states in our textbook, "Individuals often harmonize the apparently opposite characteristics of Daoism and Confucianism in their own lives." In what specific ways m ...

Assignmentscenario summarya kansas city based supplier of

Assignment Scenario Summary A Kansas City based supplier of health care information technology (HCIT) solutions has recently hired you as a Human Resource Manager. You are in charge of hiring new medical consultants for ...

Assignmentchoose one of the readings from chapters 14 15 or

Assignment Choose one of the readings from chapters 14, 15, or 16 and summarize, explain, and evaluate the main points of the reading in a minimum of 3 paragraphs. Do not simply cut and paste from the reading, but summar ...

Watch the video on the link belowthen answer the following

Watch the video on the link below. Then answer the following questions: 1. Would the incentives discussed in the video be able to work in a college setting? Why or why not? 2. Have you ever changed your behavior because ...

Assignmentxyz company enters into a contract with mary to

Assignment XYZ Company enters into a contract with Mary to landscape Ben's yard, using None Nursery to supply trees and buses. Kate owns the lot next to Ben's property. The landscaping is a gift from Mary to Ben, who is ...

Assignmentlearning objectives covered1explain 3 ways the

Assignment Learning Objectives Covered: 1. Explain 3 ways the statement of goals, application of rewards, and institution of discipline affect and motivate ethical behavior in individuals 2. Demonstrate how roles and aut ...

Economic choice and economic decision makingconsider your

ECONOMIC CHOICE AND ECONOMIC DECISION MAKING Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a new vehicle was the right decision. While an ...

Assignment1in your own words please define describe and use

Assignment 1. IN YOUR OWN WORDS, please define, describe and use an example for the following term (see below). The term (including example) should be no more than 50 words.The following rubric is used to assess each ter ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro