EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 35, Problem 1TY
a)
To determine
The autarky
b)
To determine
The autarky price of wine in terms of cloth in Portugal.
c)
To determine
The
d)
To determine
Determine the country which has an
e)
To determine
The specialization and export of goods after trade.
f)
To determine
The
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The following table describes the number of yards of cloth and barrels of wine that can be produced with a week’s worth of labor in England and Portugal. Assume that no other inputs are needed.
In England In Portugal
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If there is no trade, what is the price of wine in terms of cloth in England?
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What is the cost of producing wine in Spain relative to the cost of producing wine in Russia? What is the cost of producing vodka in Spain relative to the cost of producing vodka in Russia?
In the absence of transport costs will there be trade? If yes, then who will specializein what? Illustrate your answer numerically.
Now introduce transport costs: Exporting wine and vodka abroad increases the initial cost by 100 %. What happens to the trade between Spain and Russia? Illustrate your answer numerically.
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What is the relative price of chemicals in terms of radios in the US? In Mexico?.Explain your answer
Chapter 35 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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