Questions
Suppose there exist 2 countries, Home and Foreign; 2 goods, X and Y; and 2 factors...

Suppose there exist 2 countries, Home and Foreign; 2 goods, X and Y; and 2 factors of production, labour (L) and capital (K). Each country can produce both goods. X is labour-intensive and Y is capital-intensive. Home is labour-abundant and Foreign is capital-abundant. Assume that the standard assumptions of the Heckscher-Ohlin model hold. When answering the following question, please support each of your arguments with detailed analysis and draw the relevant diagrams to support your answer.

Consider a move from autarky to free trade between the two countries in both goods. Identify which group of people (labourers or owners of capital) gain and which lose in Home from the move from autarky to free trade. Discuss clearly how the assumptions of the model lead to this result.

In: Economics

-comment on the first five pillars of islam. -how has the qu'ran been interpreted over the...

-comment on the first five pillars of islam.

-how has the qu'ran been interpreted over the centuries to create a body of doctrine

In: Economics

Stephanos spends all of his $500 allowance on slices of pizza and gas for his pickup...

  1. Stephanos spends all of his $500 allowance on slices of pizza and gas for his pickup truck. He spends eighty percent of this on pizza and the rest on gas. Because of a shortage of gas, the price of gas increases by 40%. This makes his consumption of gas (measured in gallons) fall by 20%. If he keeps spending all his money on pizza and gas, what is the percentage change in his consumption of pizza (measured in slices)?

In: Economics

Think about someone that you admire. What are some of their personal ethics? Where do you...

Think about someone that you admire. What are some of their personal ethics? Where do you think they developed those? How could those be applied in the workplace?

In: Economics

Why does college education keep getting more expensive? If you were in a position to make...

Why does college education keep getting more expensive? If you were in a position to make a change what would you recommend to change the tuition challenge?

In: Economics

Why would consumer spending be affected by mortgage rates? Isn’t housing considered an investment item, not...

Why would consumer spending be affected by mortgage rates? Isn’t housing considered an investment item, not a consumption item?

In: Economics

Consider the following Ricardian Model with 2 economies: Germany Portugal Labor Supply 200 workers 200 workers...

Consider the following Ricardian Model with 2 economies:

Germany

Portugal

Labor Supply

200 workers

200 workers

Wine

1000 units/worker

800 units/worker

Beer

400 units/worker

300 units/worker

(d) Show graphically that Germany gains from trade. Carefully label your graph.

(e) Which country has higher wages? What determines the real wage at the national level? Explain.

(f) Calculate real wages in France in autarky and free trade? How do real wages change in France after opening to free trade? (Hint: Assume a international relative price of wine that makes sense in this model)

In: Economics

1. You have just been elected president of the United States, and the present Chair of...

1. You have just been elected president of the United States, and the present Chair of the Federal Reserve Board has resigned. You need to appoint a new person to this position, as well as a person to chair your Council of Economic Advisers. Using your knowledge of macroeconomics, identify the personal characteristics and the views on macro theory and policy you would want your appointees to have and implement.   Remember, the economic health of the entire nation and solution to keeping the economy growing will be impacted by this decision.

2. As you know, during the Great Recession, the Fed proposed a number of "bail out" measures to address the “great recession”. Indicate why or why not you would recommend that your new appointee use similar measures if this situation arises again. Should the Fed have a bond-buying program? Identify any new policies that you would like your candidate to follow.

In: Economics

Please Outline the historical context in which dependency school theories emerged and assess their contribution to...

Please Outline the historical context in which dependency school theories emerged and assess their contribution to the subject area of Development Economics.

Long answer is required

In: Economics

Calculate the price elasticity of demand for each price change. Note, you will begin with the...

Calculate the price elasticity of demand for each price change. Note, you will begin with the change in price from $2.25 to $3.25.

Price Demand Supply
$2.25 20 2
$3.25 17 5
$4.25 14 8
$5.25 11 11
$6.25 8 14
$7.25 5 17
$8.25 2 20

Assume a merchant was thinking of decreasing the price from $4.25 to $3.25. Based on your calculations, is the price decrease a good idea for the merchant? Please explain why.

How much would consumers respond to a price increase from $2.25 to $3.25. What is the effect on the merchant?

In: Economics

Suppose that the Earned Income Tax Credit is set up so that a maximum payment of...

Suppose that the Earned Income Tax Credit is set up so that a maximum payment of $3,000 can be earned when a qualified worker earns $10,000. This payment represents a subsidy of 30 cents for each additional dollar earned up to $10,000.

Workers earning between $10,000 and $14,000 are eligible for the maximum payment. Once labor market earnings exceed $14,000, additional earnings reduce the subsidy by 45 cents for each dollar earned.

The going wage rate is $10 per hour.

Will a person working between working less than 1000 hours in the labor market experience an income effect, a substitution effect, or both as a result of the EITC?

In: Economics

What is the relationship between political economy and economic progress? This question has been the subject...

What is the relationship between political economy and economic progress? This question has been the subject of a vigorous debate among academics and policymakers for some time.

APA Format/ 1 to 2 pages response, double space

In: Economics

Class, Three important topics of interest to economists are: *employment. *prices. *output. Develop one microeconomic statement...

Class,

Three important topics of interest to economists are:

*employment.

*prices.

*output.

Develop one microeconomic statement and one macroeconomic statement dealing with each of the three topics just listed. Post your statements and discuss them and the statements posted by your classmates.

In: Economics

Firm Alpha can leave its windows uncovered or pay to install shutters on its windows. Whether...

Firm Alpha can leave its windows uncovered or pay to install shutters on its windows. Whether the shutters are installed has an effect on Firm Beta’s profit, as illustrated in the table 1. 2. 3. 4. 5. below. Does the shutter installation create a positive or a negative externality? Explain. Is it efficient for the shutters to be installed? Explain. Suppose that Firm Alpha has the property rights. What will happen if the firms negotiate? Suppose that Firm Beta has the property rights. What will happen if the firms nego- tiate? Relate your answers above to the Coase Theorem.

In: Economics

discuss the organizational culture and impact business environment in gcc. give an example?

discuss the organizational culture and impact business environment in gcc. give an example?

In: Economics