onsider a Ricardian trade model where both countries have expenditure share q =0.2 on manufactures, Country 1 has Am =1 and As=4 and L= 100 while Country 2 has Am*=As*= 0.5 and L*= 200. With free trade, which of the following is true? a.The relative wage is w/w*=8 b. Country 2 produces 100 manufactures and exports 80 manufactures c.Country 1 produces 400 services and exports 80 services d.All of the other options

onsider a Ricardian trade model where both countries have expenditure share q =0.2 on manufactures, Country 1 has Am =1 and As=4 and L= 100 while Country 2 has Am=As= 0.5 and L= 200. With free trade, which of the following is true? a.The relative wage is w/w=8 b. Country 2 produces 100 manufactures and exports 80 manufactures c.Country 1 produces 400 services and exports 80 services d.All of the other options

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 6SCQ: Suppose we extend the circular flow model to add imports and exports. Copy the circular flow diagram...

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Consider a Ricardian trade model where both countries have expenditure share q = 0.2 on manufactures, Country 1 has Am = 1 and As = 4 and L = 100 while Country 2 has Am* = As* = 0.5 and L* = 200. With free trade, which of the following is true? Group of answer choices - The relative wage is w/w* = 8 - Country 1 produces 400 services and exports 80 services - Country 2 produces 100 manufactures and exports 80 manufactures - All of the other options
1. Try to describe the global economic crisis on world trade and commodity prices because of the COVID and use the Stopler-Samuelson theorem to predict the effect on income distribution in Australia. It should be imagined Australia is a specific factor economy with 'mining' in Queensland and Western Australia on the one hand, and a sector included manufacturing, agriculture and services in the other states. Assume that there is mobile labour between these two sectors, that there is no unemployment, and that Australia is a price taker for its exports.
Use the specific factor model to analyze a simplified version of a liberalization of trade betweenBrazil and Japan. Assume that there are two goods that people want to buy: coffee and cars. Assumethat there are three production factors: land, capital and labor. Land is specific to coffee, capital isspecific to cars and workers can work in both industries. Assume that, under autarky, coffee is cheaper in Brazil than in Japan. How does the price of coffeein Brazil change when Brazil opens up to international trade? Explain your answer
9. Answer ALL parts of this question. Consider the standard trade model with two goods and two factors, labour and capital. (a) Suppose that a country experiences an increase in its labour force. Assume thatgood X is labour intensive and good Y is capital intensive. How would theproduction possibility frontier change as a result? Illustrate this with a simplediagram. (b) What does it mean for the “terms of trade” to improve and why might this matter interms of welfare? (c) Consider two countries: Home and Foreign. Each country produces two goods,cloth (C) and food (F). Assume Home is an exporter of cloth. Now suppose Homeimposes a 20 percent tariff on the value of food imports. What will be the effect ofthe food tariff on the relative price of cloth and terms of trade? Illustrate youranswer with a relevant diagram. You may assume that Home is large enough toaffect the world market.
What would happen in Ricardian model and the Heckscher-Ohlin model, a) If one country tried to export more to the other country? b) If one country restricted the amount of imports from the other country? c) What does this imply for trade policy? Please answer correct explain plz asap plz Don't answer by pen paper plz
Consider a Ricardian framework with two countries, A and B, and two products, G1 and G2. The following table shows the marginal product of labour in G1 and G2 in both countries. G1 G2 Country A 3 7 Country B 7 5 Which one of the following independent scenarios is not possible at the trade equilibrium? A.Compared to autarky, country A workers receive the same real wage in G2. B.Relative price of G1 is 8/3. C.Compared to autarky, country B workers receive higher real wage in G1. D.Relative price of G1 is 5/7.
Use the accompanying table for Neon and Zeon to answer the questions that follow. Assume that the wage rate shown equals hourly output and income and that the accumulated output and income are the sum of the marginal revenue products (MRPs) of each worker. a. Which country has the greater stock of capital and technological prowess? How can you tell?b. Suppose the equilibrium wage rate is $19 in Neon and $7 in Zeon. What is the domestic output (= domestic income) in the two countries?c. Assuming zero migration costs and initial wage rates of $19 in Neon and $7 in Zeon, how many workers will move to Neon? Why will not more than that number of workers move to Neon?d. After the move of workers, what will the equilibrium wage rate be in each country? What will the domestic output be after the migration? What is the amount of the combined gain in domestic output produced by the migration? Which country will gain output; which will lose output? How will the income of native-born workers be…
can you explain how they got M=y^2/2 and L=2y^2 from part b of this question
Let's see how many jobs have to be destroyed for one net job to be created. As noted in the text, millions of jobs are created and destroyed every month. Suppose that 5 million jobs are destroyed every month and 5.25 million jobs are created. What is the net job creation? Net job creation: million How many total jobs are destroyed for every net job created? Total jobs destroyed for every net job created:
a) In what respect is the economic decision to move across international borders an investment decision? b) Why do economic migrants move to some countries but not to others? Cite an example of an explicit cost of moving; an implicit cost of moving. c) How do distance and age affect the migration decision? c) How does the presence of a large number of previous movers to a country affect the projected costs and benefits of subsequent movers?
Question 13 a Please help awnser the following question: Question: It is sometimes argued that, if a government protects a domestic industry (forexample, using tariffs or subsidies) that is facing import competition from a moreefficient foreign industry, this would be a net gain for the country as a whole, evenif the foreign industry is itself protected. Give arguments for and against this pointof view, drawing on Ricardo’s theory of trade, the Standard Model, and other theorythat you consider relevant. Finally, does the size of the country matter?
c. Compare the agricultural employment share and agricultural labor productivity, boththe level and the trend, between the two groups of countries(high-income vs. low-income countries). What can you tell about the differences?d. The theory in Lagakos and Waugh (2013) explains the low agricultural labor productivityin low-income countries with self-selection. Explain the main mechanism of the theory onhow self-selection leads to low agricultural labor productivity in poor countries. (both c and d please)