Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in bananas production it is 2. There is now also another country, Foreign, with a labor force of 800. Foreign’s unit labor requirement in apple production is 5, while in bananas production it is 1. e) Show that how both Home and Foreign countries gain from trade.

Q: Demand: P=420-60Qd Supply: P=2+20QS a. With free trade and an international price of $60 per barrel,…

A: Demand : P = 420 - 60Q 60Q = (420-P) Q = (420-P)/60   Supply : P = 2 + 20Q 20Q = (P-2)  Q = (P-2)/20…

Q: Answer the questions on the right based on the following scenario: Barriers to Trade Scenario: You…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: If demand for a country's export good rises, other things being equal, will both the commodity terms…

A: If demand for country export goods rises this will lead to an increase in the Price index=Px/Pi or…

Q: According to the Factor Proportions (H-O) model of international trade, in which good does…

A: According to the Factor Proportions (H-O) model of international trade, countries in which capital…

Q: Quotas and Tariffs reduce international trade in the same way a. True b. False

A: A quota is a government-imposed trade restriction that restricts the number or value of commodities…

Q: The country of Autarkistan is currently closed off from the world and engages in no international…

A: The factor proportions (H-O) model of international trade explains that the countries must export…

Q: The phenomenon that occurs when high-cost domestic producers are replaced by low-cost producers…

A: Trade bloc helps to create free trade for people but this trade might or might not improve the…

Q: Price $11.00 $7.50 $6.00 $4.00 D 4 6 12 15 Quantity The graph above shows the demand and supply of…

A: When the price imposed above the market equilibrium price leads to a surplus (supply > demand) in…

Q: The table below shows the monetary value of the production of gems and steed respectively in the…

A: The opportunity cost of producing Gems in Zimbabwe and turkey can calculated as follows: Zimbabwe…

Q: international trade Home has 1200 units of labor available. It can produce two goods, apples and…

A: International trade: International trade is that the transfer of capital, goods, and services across…

Q: Suppose the UK and Canada produce bread and cars using labor. These goods are produced based on the…

A: Part a: Here using 1350 labours Canada can produce either 15(1350/90) cars or 270(1350/5) bread. And…

Q: Suppose that in a week an American worker can produce 60 shirts or 4 computers and a Canadian worker…

A: t is given that an American worker can produce 60 shirts or 4 computers and a Canadian worker can…

Q: Table 1 Labour Hours Needed to Make 1 Kg of: Meat Potatoes Canada 8. Brazil 4 Refer to Table 1. How…

A: Absolute advantage refers to the ability of an individual, a firm or a country to produce more…

Q: international trade Home has 1200 units of labor available. It can produce two goods, apples and…

A: Trade is important for all the countries of the world. Trade includes exports and imports. There are…

Q: Now find the free trade equilibrium, assuming no transportation costs or tariffs, by setting P = P*…

A: The answer of only (d) is given here. Free trade, in classical theory, is known as the best way to…

Q: 1.4 If free trade exists between the United States and France, what are the highest and lowest…

A: Beneficial trade exists when the terms of trade relative price is between the domestic relative…

Q: Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor…

A: Answer -

Q: Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor…

A: The exchange of commodities and services between countries is known as international trade.…

Q: home opens up to trade. How does home's export supply curve change, if at all, the population growth…

A: When a country opens up to commerce, capital and labor shift to industries where they can be used…

Q: Production and consumption of Smartphones and Smart cars for the Republic of Westein and Republic of…

A: The Economic transaction of goods and services in between the countries is international trade.

Q: Suppose that in the absence of trade, the U.S. price for bicycles was higher than the world price…

A: In the event that without international trade, the price in the U.S. for bicycles was higher than…

Q: Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day…

A: Comparative Advantage can be defined as the ability to produce a particular product at a lower…

Q: In Poland, one hour of labour can produce 2 tons of coal or 4 bushels of oats. In England, one hour…

A: If two nations, An and B, are thought of, where the makers of A can create awareness with a chance…

Q: Through some countries have become famous for the goods and services they produce. * O None of the…

A: When countries engage in sale and purchase of goods and services within their boundary, they engage…

Q: The following diagram is for Country A based on the Ricardo madel Wheat (millions) 30 Terms of Trade…

A: The PPF line shows that Country A can produce a maximum of either 30 million of corn or 30 million…

Q: When a country allows trade and becomes an exporter of a good, which of the following is NOT a…

A: When an economy allows trade and exports, then the price received by sellers in the domestic market…

Q: With trade a country will produce a greater variety of goods and services to trade O country is…

A: With the opening up of trade, there is specialization and the country is involved in the production…

Q: Assume two nations: Vietnam and US, and two commodities: clothing and wheat. There is only one…

A: 1. We have two countries: The United States and Vietnam. 2. Clothing and wheat are both produced…

Q: (Figure: Market for Pants) Suppose that the world price of a pair of pants is $40. According to the…

A: Here, the given graph shows domestic sand and supply of pants with the equilibrium price of $50 and…

Q: Answer the questions on the right based on the following scenario: Barriers to Trade Scenario: You…

A: The equilibrium price and quantity of a good sold in the market are determined by the forces of…

Q: In a given country, automobiles industry sells a car for 20,000$ that has a cost in imported parts…

A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…

Q: Q95 The division of the gains from trade between two trading countries depends on the... a.…

A: The division of the gains from trade between two trading countries depends on the difference between…

Q: According to the World Trade Organization; Which intervention tool should countries prefer when they…

A: World Trade Organization is an intergovernmental organization which is work to regulate the…

Q: an import quota is imposed on imports of shrimp into the United States, U.S. consumers ________ and…

A: We have to solve  given question.

Q: Answer the questions on the right based on the following scenario: Barriers to Trade Scenario: You…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: 2. Suriname and Paraguay consume two goods, coffee and machines, and labour is the only input into…

A: Answer-

Q: Workers in industries protected by tariffs and quotas are likely to support these trade restrictions…

A: As per Job argument, tariff is beneficial since it prevents job loss in domestic import-competing…

Q: Many U.S. firms import products or parts from other countries indstead of producing them…

A: Countries generally do trade with other nations when they have a lack of resources, to fulfill and…

Q: Barriers to Trade Scenario: You own Steelco, a U.S.-based company that produces steel. You and other…

A: Import tariff is tax on imports. It is used to increase the price of imported goods which reduces…

Q: Openness of an economy is: (a) the extent to which a country is involved in international trade and…

A: An economy is characterized as open or close according to its functioning and ability to make…

Q: INTERNATIONAL TRADE A country imposing a tariff can benefit in terms of social welfare if A. If it…

A: Ans:- Option B :- if it is small

Q: Two countries (A and B) produce tea and oranges using labor. The number of hours of labor required…

A:

Q: Assume that an American worker can produce 5 cars per year or 10 tons of grain per year, whereas a…

A: When two countries produce two goods and ready to make international transactions, a country will…