n the basis of criticizing the views of the Mercantilism, Adam Smith put forward ( ) theory. A .Absolute Advantage Theory B.Comparative AdvantageTheory c.Overlapping Demand Theory D.Factor Endowments Theory
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on the basis of criticizing the views of the Mercantilism, Adam Smith put forward ( ) theory.
A .
B.Comparative AdvantageTheory
c.Overlapping
D.Factor Endowments Theory
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- . Ricardian Model. Consider two countries: A and B. Labour is the only factor of production for goods X and Y. Consider the following matrix of unit labour requirements. X Y Labor Endowments Country A aLx = 8 aLy = 4 240 Country B aLx* = 6 aLy* = 2 120 Which country has an absolute advantage in producing good X? Good Y? Which country has comparative advantage in producing good X? What is the autarky relative price of good X for country A? For country B? Draw the world relative supply curve RS for good X. Label all the axes (relative price of good X on the vertical axis and world output of x relative to y on the horizontal axis) and the relevant points. Suppose that the world relative demand RD for good X is given by: (Px/Py) = 7 – 9 * ( ( Qx +Q*x) / (Qy + Q*y) ). With free trade: (i) What will be the equilibrium world relative price of good X be equal to? (ii) Calculate the equilibrium wage rate w in A relative to that…10. Which one the following represents a theory for the long-term?a. Theory of factor endowmentsb. A theory of comparative advantagec. A theory based on the product cycled. An overlapping demand theoryIn factor endowment theory,opportunity cost is A.increasing B.decreasing c. constant d.increasing first and decreasng after
- Using the one factor Ricardian model concept and the unit labor requirements information in the table below, determine d) In what commodity production, foreign has a comparative advantage.Explain.e) Which country has an absolute advantage. Explainf) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, thenWhat commodities will domestic specialize in?g) If PC is the price of Cheese and PW is the price of Wine, and PC = PW, thenwhat commodities will foreign specialize in?h) Using the comparative advantage information above, determine the commodity thatexported and imported by domestic and foreign respectively?i) If PC = PW or PC/PW = 1, what is the gain from trade obtaineddomestic and foreign if each country specializes inwhich production has a comparative advantage? Explain.j) If if PC = PW = $9, what is the wage relative to trade.Which country's workforce benefits from the trade?Please explain classical political economy view of market mechanism in regards to Adam smith, Ricardo and SayBoth answers give you thumbs up and explain it Question 21What was the "General Will" theory?A) an individual's decision based on their personal interests, often revealing their own personal greedB) an individuaľ's ability to overcome their personal interests and vote for what is best for the communityC) the majority voteD) protection for the minority whose ideas were defeated in the vote Question 22Which of the following was NOT related to the "Division of Labor theory?A) use of machines and other inventionsB) creation of an early "assembly lineC) increases in worker efficiencyD) workers would become revolutionary in their hatred of industríal labor
- What are the answers for mixed and pure specific factor models? Are the answers for both (B. Owners of A will benefit)? Please help and explain In the Question1Mixed and Question2Pure Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific to C and Land (A) is specific to W. If the government imposes a tariff on the imports of W then A. Both owners of K and owners of A will benefit. B. Owners of A will benefit. C. Owners of K will benefit. D. Neither owners of K nor owners of A will benefit.MULTIPLE CHOICE (identify the one best answer and provide explanations): Consider an economy inwhich 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 surelyconclude that productivity has increased if:a. the amount of goods and services produced from each hour of the worker’s time increases.b. the amount of goods and services produced by the worker increases relative to a worker inanother country.c. if the amount of goods and services produced by the worker in a given year increases.d. all of the above.e. none of the abovePlease answer correct explain please asap please Don't answer by pen paper. What are the main characteristics of each of the three economic ideologies we've analyzed in our class - mercantilism, liberalism and nationalism? What's common and what's different between these three templates? What historical processes provided the background to the rise of mercantilism, liberalism (Adam Smith) and nationalism (Friedrich List)? Please outline each of these templates and identify important differences between them.
- a) What is "Capture Hypothesis"? b) What is "Share the gain, share the pain" theory? c) What do we mean by comparative advantage?a) sen What is: (not more than 3 sentences for each of them) Absolute advantage? Comparative Advantage? Heckser Ohlin Theorem? Difference of Heckscher Ohlin Theorem from Comparative advantage theory?If countries specialize according to their absolute advantage then the Ricardian model statesthata. the. trade is beneficial for all trade partners.b. trade is a stupid idea anyway.c.it is ambiguous whether trade is beneficial for all trade partners.d. trade is only beneficial for those who have absolute advantage as well