Question
In: Economics
There are two countries Home and Foreign. Home has 1,200 units of labor available. It can...
There are two countries Home and Foreign.
Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2.
Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1.
Suppose world relative demand takes the following form: Demand for apples/demand for bananas = price of bananas/price of apples.
1) a) The equation for Home's trade possibilities frontier (TPF) is
b) Home's maximum consumption of apples is
&
Home's maximum consumption of bananas is
2) a) The equation for Foreign's trade possibilities frontier (TPF*) is
b) Foreign's maximum consumption of apples is
&
Foreign's maximum consumption of bananas is
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Please solve the following problems: 1.Home has 1,200 units of labor available. It can produce two...
Please solve the following problems:
1.Home has 1,200 units of labor available. It can produce two
goods, apples and bananas. The unit labor requirement in apple
production is 3, while in banana production it is 2.There is now
also another country, Foreign, with a labor force of 800. Foreign’s
unit labor requirement in apple production is 5, while in banana
production it is 1.Construct the world relative supply curve in
terms of bananas.
2.Suppose that instead of 1,200 units of...
The Home country has 2,800 units of labor available while the Foreign country has 1700 units...
The Home country has 2,800 units of labor available while the
Foreign country has 1700 units of labor. The two countries produce
two goods, textiles and soybeans. The unit labor requirements in
textile production for the Home and Foreign countries is 7.2 and
2.7, respectively, while soybean production requirements is
respectively 3.1 and 5.5.
a.) Graph the Home and Foreign production possibilities
frontiers.
b.) What is the opportunity cost of textiles in terms of
soybeans for both countries?
c.) What...
There are two countries, Home and Foreign. The two countries are identical except that Home has...
There are two
countries, Home and Foreign. The two countries are identical except
that Home has a labor force of 100 and Foreign has a labor force of
200. Given this allocation of labor across Home and Foreign, the
value of the marginal product of labor in Home is 30 and the value
of the marginal product of labor in Foreign is 20. If labor were to
be free to move, the wage in both countries would be25.
fi mmigration...
There are two countries, Home and Foreign. The two countries are identical except that Home has...
There are two countries, Home and Foreign. The two countries are
identical except that Home has a labor force of 100 and Foreign has
a labor force of 200. Given this allocation of labor across Home
and Foreign, the value of the marginal product of labor in Home is
30 and the value of the marginal product of labor in Foreign is 20.
If labor were to be free to move, the wage in both countries would
be 25.
What...
[3] The Home country has 2,200 units of labor available while the Foreign country has 1600...
[3] The Home country has 2,200 units of labor available while
the Foreign country has 1600 units of labor. The two countries
produce two goods, textiles and soybeans. The unit labor
requirements in textile production for the Home and Foreign
countries is 7 and 2.5, respectively, while soybean production
requirements is respectively 3 and 5.
a.) Graph the Home and Foreign production possibilities
frontiers.
b.) What is the opportunity cost of textiles in terms of
soybeans for both countries?
c.)...
[4] The Home country has 2,500 units of labor available while the Foreign country has 1700...
[4] The Home country has 2,500 units of labor
available while the Foreign country has 1700 units of labor. The
two countries produce two goods, textiles and soybeans. The unit
labor requirements in textile production for the Home and Foreign
countries is 7.2 and 2.2, respectively, while soybean production
requirements is respectively 2.9 and 5.1.
a.) Graph the Home and Foreign production possibilities
frontiers.
b.) What is the opportunity cost of textiles in terms of
soybeans for both countries?
c.)...
Suppose Home has 2,000 units of labor available. It can produce two goods, clothing (C) and...
Suppose Home has 2,000 units of labor available. It can produce
two goods, clothing (C) and wheat (W). The unit labor requirement
in clothing production is 5, while in wheat production it is 2.
Home is as described above. Now suppose there is another country,
Foreign, with a labor force of 3,000. Foreign’s unit labor
requirement in clothing production is 2, while in wheat production
it is 4.
a. Which country has an absolute advantage over the other in
clothing...
Suppose Home has 2,000 units of labor available. It can produce two goods, clothing (C) and...
Suppose Home has 2,000 units of labor available. It can produce
two goods, clothing (C) and wheat (W). The unit labor requirement
in clothing production is 5, while in wheat production it is 2.
Home is as described above. Now suppose there is another country,
Foreign, with a labor force of 3,000. Foreign’s unit labor
requirement in clothing production is 2, while in wheat production
it is 4.
a. Which country has an absolute advantage over the other in
clothing...
Suppose Home has 2,000 units of labor available. It can produce two goods, clothing (C) and...
Suppose Home has 2,000 units of labor available. It can produce
two goods, clothing (C) and wheat (W). The unit labor requirement
in clothing production is 5, while in wheat production it is 2.
Home is as described above. Now suppose there is another
country, Foreign, with a labor force of 3,000. Foreign’s unit labor
requirement in clothing production is 2, while in wheat production
it is 4.
Please answer through a to d.
a. What and how much do...
Suppose Home has 2,000 units of labor available. It can produce two goods, clothing (C) and...
Suppose Home has 2,000 units of labor available. It can
produce two goods, clothing (C) and wheat (W). The unit labor
requirement in clothing production is 5, while in wheat production
it is 2.
(1 point) a. Let QC and QF be the quantities of clothing and
wheat produced, derive Home’s production possibility frontier (PPF)
and graph it.
(1 point) b. What is the opportunity cost of clothing in terms
of wheat?
(1 point) c. What and how much does...
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