(d) Which country has the comparative advantage in food? In fuel? Explain. (e) Which good(s) should each country specialize in? *(f) Calculate the gains from trade from specialization.
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- Please no written by hand solutions Suppose Latvia and Estonia each produce only two goods, tractors and bobsleds. Both are produced using labor alone. Assuming both countries are at full employment, you are given the following information: Latvia: 20 units of labor required to produce 1 tractor 8 units of labor required to produce 1 bobsled Total labor force: 1,000,000 units Estonia: 15 units of labor required to produce 1 tractor 30 units of labor required to produce 1 bobsled Total labor force: 750,000 units Draw the production possibility frontiers for each country in the absence of trade. 1.) Using the line drawing tool, draw the production possibility frontier for Latvia. Properly label your line. 2.) Using the line drawing tool, draw the production possibility frontier for Estonia. Properly label your line. Carefully follow the instructions above and only draw the required objects. If transportation costs are ignored and trade is allowed, Estonia and Latvia will not engage in…Comparative Advantage Worker Wage Time to complete 1 unit Paneling Dry Wall Al ($9/hr) 6hrs 4hrs Ken ($10/hr) 5hrs 5hrsSuppose Nation B has 8,623 labor hours each year to produce burgers and fries. Burgers take 13 hours to produce each, and fries take 7 hours to produce each. Suppose Nation B also sees a sudden surge in working-age immigrants, leading to 26% higher labor hours each year. What is the maximum number of fries is Nation B able to produce in a year after this surge of immigration? Round your answer to one place after the decimal point (0.1).
- Use the information in the table to calculate the price ratios for biscuits and chips in both the countries under autakv and fill the table below: Oman Singapore Labour hours per ton of biscuits 1600 2400 Labour hours per ton of chips 1800 2000 Show all your calculations. Fill the table below. Oman Malasiya Labour hours per ton of biscuits 1 biscuit= 1 biscuit= Labour hours per ton of chips 1 chips= 1 chips=If Portugal has a total of 90 man-hours of resources available for production, while England has only 30, what are the resource costs of wine and cloth? a. Wine costs 1/2 man-hours/bottle and cloth costs 1/2 man-hours/yard in England b. Wine costs 1 man-hour/bottle and cloth costs 1 man-hour/yard in England c. Cloth costs 1 man-hours/yard and win costs 1 man-hours/bottle in Portugal d. Wine costs 1/2 yards/bottle and cloth costs 2 bottles/yard in PortugalImagine two countries, i and j. You have the following information: si = 2 sj hi= hj 2Ai = Aj What can you infer about long-run income per worker differences between these countries? Explain formally.
- If Kamilah can produce 4 computers or 3 radios during a month's time, while Sally can produce 1 computer or 2 radios during the same period, then it is correct to state that Sally should not be employed. Kamilah has a comparative advantage in producing computers. Kamilah has a comparative advantage in producing both computers and radios. Sally has a comparative advantage in leisure.That a rich country like Germany has such a small ratio of imports to GDP as compared to Belgium is the evidence of geography. Please explainSuppose that in a year an American worker can produce 60 shirts or 30 computers and a Chinese worker can produce 60 shirts or 12 computers. There are 1 million workers in each country.
- Below is the data for the maximum production of the only two products for the countries of Oz and Zas. Oz: 14 food units 22 equipment units Zas: 26 food units or 14 equipment units a. If each country is self-sufficient, with no trade between them, and each uses one-half of their resources to produce each of the two products, what is the output in each country. Fill in the table below. Country Output of food units Output of equipment units Oz Zas b. Based on part (a), total production of food is units and total production of equipment is units c. If, instead, each country specializes and produces only the product that it can produce best, what will be the output in each country? Fill in the table below. Country Output of food units Output of equipment units Oz Zas d. Now, based on part (c), total production of food is _____ units and total production of equipment is ____units. e. The gains as a result of specialization are ___ more units of food produced and _____more units of equipment…Fishyland is a small country that focuses on her fishing industry. She has a production function of Y = 60L0.4K 0.6 . where L is labour and K is capital. a. Calculate the real wage rate of labor. b. Suppose the World Bank grants more fishing tools to Fishyland. From the answer in (a), will a typical labor in Fishyland benefit from this? Explain.Even though the size of the US labor force is nearly double that of Bangladesh, Bangladesh is characterized as a labor-abundant country. Explain why. Despite being labor-abundant, Bangladesh mainly exports ready-made garments (RMG), which many regard as capital-intensive. How would you explain this apparent paradox?
