In the Specific Factors Model, assume that in Country A, "wheat" is produced by using land and labor, "leather" is produced by using capital and labor. Assume that price of leather (PL ) increases by 7% while and price of wheat (Pw) stays constant. Output of leather (rises/falls/stay constant).
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- In the Spesific Factors Model, assume that in Country A, "wheat" is produced by using land and labor, "leather" is produced by using capital and labor. Labor is defined as a ................................ ( mobile/ specific/ fixed) factor.Consider an H-O economy in which there are two countries (US and France), two goods (wine and cheese) and two factors (capital and labor). In each question below you are given partial information about the model and asked to infer some other part. Treat each question separately and independently. 1. Suppose a decrease in the price of cheese causes a decrease in the wage rate in the US economy. Which factor is used intensively in cheese production in France? Which H-O theorem is used to get this answer? Explain. 2. Suppose France exports wine, the capital-intensive good. Which factor benefits from free trade in the US? Explain. 3. Suppose workers in France benefit when tariffs are increased on cheese imports. Which factor is used intensively in cheese production? What is France's abundant factor? Explain.Assume that a country with a market economy produces capital goods and consumer goods, use the data that follows to answer the question that follows: Capital Goods Consumer Goods 50 0 40 20 30 35 20 45 10 50 0 51 Does the “law” of increasing opportunity cost apply in the…
- Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. What recommendations would you give?The Heckscher-Ohlin model predicts that trade in goods leads to convergence in prices of factors between different countries. True FalseEvaluate the statement “a model with total-factor augmenting technological progress is identical to a model with labor augmenting technological progress.”
- Show the necessary graphs to fully explain all requested effects. Ensure to label graphs andgive brief detailed explanations. "Assume that Trinbago is a small country that produces wine and motor vehicles, where motorvehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin(H-O) assumptions hold. The other country in the model is Vincyland."Economics Refer to the figure above. If cars are capital intensive and furniture is labor intensive, then according to the HO theory, then this country.. (select all that apply)How would this situation affect a nation's production possibility curve? The nation passes a law requiring all employers to give the employees 16 weeks of paid vacation each year. How would this situation affect a nation's production possibility curve? A shift to online delivery increases access to education in the nation's colleges and universities but might have a detrimental impact on the quality of education. Timothy quits his job which pays $65 900 a year to enrol in a 2-year graduate program. His annual school expenses are $62 600 for tuition, $8400 for books and $3500 for food. What is the opportunity cost of attending the graduate program?
- Empirical observations and statistical analysis confirm that immiserizing growthoccurs when:(a) the nation's development tends to favor the importation sector.(b) the nation's export is price elastic.(c) a nation's consuming choices are favor the export good.(d) a nation is extensively involved in international trade transactions.MULTIPLE CHOICE (identify the one best answer and provide explanations): Consider an economy in which each worker has one machine and one unit of natural resources. Assume these inputs are fixed, and so is the worker’s human capital. But there has been an improvement in technology. We can surely conclude that productivity has increased if: the amount of goods and services produced from each hour of the worker’s time increases. the amount of goods and services produced by the worker increases relative to a worker in another country. if the amount of goods and services produced by the worker in a given year increases. all of the above. none of the above.Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. please conclude your findings