Assume that MPLw=8, and MPLc = 6. What is the opportunity cost of wheat in the Home country? MPLC / MPLw = 3/4 Insufficient information is given. We need to know the wage rate. MPLw/ MPLC = 4/3 Under perfect competition, the relative price of wheat (Pw /Pc) in the no-trade equilibrium is ___________ the opportunity cost of wheat. equal to smaller than greater than

Assume that MPLw=8, and MPLc = 6. What is the opportunity cost of wheat in the Home country? MPLC / MPLw = 3/4 Insufficient information is given. We need to know the wage rate. MPLw/ MPLC = 4/3 Under perfect competition, the relative price of wheat (Pw /Pc) in the no-trade equilibrium is ___________ the opportunity cost of wheat. equal to smaller than greater than

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Let us consider the case of Good X in Malaysia. The demand and supply functions for Good X in Malaysia are Demand function: QD=363−2P Supply function: QS=22+P If the world price is 70, then is Malaysia an importer or exporter? Find out the quantity of imports at Pw=70 If import quota was 80 units what will be the new price in the Malaysian market? How many Good X will be produced domestically after quota has been implemented? How many Good X will be consumed by domestic consumers after quota has been implemented? What will be the import after implementing import quota of 80 units? (Please give your answers in two decimal places) What is the percentage change in imports after the imposition of import quota? Please give your answers in two decimal places, Multiply by 100 to convert into percenatge (if you get 0.40 then submit 40 in the answer)
Consider a small country with only three producers, X, Y, and Z, who produce ink, pen, and paper, respectively. Y uses ink (output of X) in its production of pens. X produces 1,457 liters of ink monthly, Y produces 57,291 pens monthly, and Z produces 14 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of $338 per liter. Y sells 43,385 pens at a market price of $0.59 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $781 per metric ton. The annual market value of production in this economy is $__?
Suppose country A and B have a labour force of 1 and produce hops and barley using only labour. Country A's unit labour cost are 0.5 for hops and 0.5 for barley, country B's 0.2 for hops and 0.4 for barley. Suppose that both are needed to brew beer in equal quantitiy, so that both national and international demand has the property that equal amounts of barley and hops are demanded. How much more beer (as a percentage) will be brewed under international trade than in autarky? Please enter the percentage rounded to a whole number (up or down is both acceptable) without the percentage sign.
Suppose that there are two sectors in the economy the first sector employsskilled labor and unskilled labor for production while the second sector employs unskilled labor and land for production. The only mobile factor is unskilled labor and in the short run, skill accumulation is not feasible. All factors are constant in size and there is no unemployment for any factor. -Explain about change in income distribution after trade liberalization ifthe price for the first good increases after opening up to trade while the pricefor the second good stays fixed?
1. Suppose a country has 2386 of Labor and its ppf is given by 119*Qc+214*Qw<=L. Suppose the price of wine is 26, what is the price of cheese? 2. Suppose a country has 6299 of Labor and its ppf is given by 199*Qc+227*Qw<=L. What is the maximum amount of cheese that home can produce? 3. Suppose alc=22,alw=22,alc*=1,alw*=10, L=549,L*=2446. Suppose that home and foreign both specialize. What is (Qc+Qc*)/(Qw+Qw*)?
Coffee is now the second most traded commodity in the world after crude oil. Not only has demand for various coffee products risen sharply in Western countries in recent years, increasingly there is also greater taste for coffee drinks in developing countries such as China and India. In addition, by-products of coffee beans have become popular such as coffee leaves which can be used to brew a tea with known health benefits. However, as a natural produce, coffee plants are subject to weather conditions. Recently major producers such as Brazil have been plagued by droughts. Using the demand-supply model, explain the likely effects of these phenomena in the coffee bean market. How can a market analyst use this information to her advantage?
Assume that labor is the only factor of production and is homogenous. Further assume prices equal the cost of production. Given this information, answer the question that follows the table: N-1 N-2 Wheat(bushel/labor-hour) 6 1 Cloth (yard/labor-hour) 3 2 (a), Express Pc relative to Pw for both the N-1 and the N-2 in the absence of trade. (b) Express the limits for mutually advantageous trade in terms of Pw/Pc and Pc/Pw. (c) Assuming that, the wage rate per labor hour in the N-1 is $6 and that of N-2 is £1.8, express Pw and PC in the N-1 in terms of S and in the N-2 in terms of f, in the absence of trade. (d) Which commodity will the N-1 import and export if the exchange rate is £ 1 = $ 3. What if £ 1 = 5 0.50? What if £ 1 = $ 2? What if € 1 = $ 1?
Given total potential output of Maize 250,000 tons and Peanuts 750,000tons; and Consumption of Maize 200,000 tons and Peanuts 150,000 tons; what is the relative price of maize in terms of peanuts?
Let us consider the case of Good X in Malaysia. The demand and supply functions for Good X in Malaysia are Demand function: QD=361−2P Supply function: QS=23+P If the world price is 70, then is Malaysia an importer or exporter? Find out the number of imports at Pw=70 (Please give your answers in two decimal places. ) If the import quota was 80 units what will be the new price in the Malaysian market? (Please give your answers in two decimal places.) How many Good X will be produced domestically after the quota has been implemented? (Please give your answers in two decimal places.) How many Good X will be consumed by domestic consumers after the quota has been implemented? (Please give your answers in two decimal places.) What will be the import after implementing an import quota of 80 units (Please give your answers in two decimal places.) What is the percentage change in imports after the imposition of import quota? (Please give your answers in two decimal places, Multiply by 100 to…
Consider an offshoring model such as the one illustrated in Figure 7‑1 in the text. In this model, the relative wage of low‑skilled labor to high‑skilled labor is lower in Foreign than in Home. The costs of capital and trade are uniform across production activities. a. Suppose that Home uniformly increases the tariff it applies to imports of all goods and services from Foreign. How does this affect the slicing of the value chain? The increased tariff___. b. On the labor supply and demand diagrams for Home and Foreign, show the effects of the change described in part a. Shift the curves affected and identify the new equilibriums with points B and B'. What happens to the relative wage in each country? c. Suppose instead that the Home country requires that low‑skilled labor in Foreign be paid a minimum wage that is higher than its current wage. This wage is still less than what low‑skilled labor earns at Home. How does this affect the slicing of the value chain? d. Continuing from…
Identify the following statement's accuracy and briefly state why. government intervention is needed to assist the growth of the local economy. Import restriction is used to limit the supply of foreign products, thus artificially increasing the price of foreign products. Import restrictions such as import tax will increase the price of both foreign and local products. Market failure is the equal and efficient distribution of resources in a market. Market failure occurs due to the failure of price mechanism where the supply of a product does not equal the demand of a product, leading to an absence of an equilibrium point in the market.
cost data:Assembly: Total cost of production = 400Earnings of High-Skilled Labor = 100Earnings of Low-Skilled Labor = 200Earnings of Capital = 100R&D: Total cost of production = 400Earnings of High-Skilled Labor = 175Earnings of Low-Skilled Labor = 125Earnings of Capital = 100A) In which factor is assembly intensive? In which factor is R&D intensive? Suppose that due to the opening of trade, the price of assembly falls by −20%, the price of R&Dremains unchanged, 0%, and capital’s share earnings remains constant. What has happened to the relative wage of high-skilled/low-skilled labor? Does this match the predictions of the offshoring model?