What is the difference in the total number of pencils made by both workers after specialization? What is the difference in the total number of pens made by both workers after specialization?
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- What is the difference in the total number of pencils made by both workers after specialization?
- What is the difference in the total number of pens made by both workers after specialization?
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- Assuming that there are only two countries in the world, Indonesia and ROW (Rest of the World) which both produce Cloth (C) and Food (F) using labor as factor production. The following table shows the number of hours of work needed to produce one unit of C and F in both countries: Cloth (C) Food (F) Indonesia 1 hour per meter 2 hour per kg ROW 6 hour per meter 3 hour per kg Please answer the followings: a. If we use the Smithian Absolute advantage, can both countries gain? Why? b. Eventually, these countries can still trade, please explain c. Please show the gains from trade for producers and consumers in both countries d. Can we see a catching up (factor price) pattern for both countries?Imagine that a worker in Bangladesh is paid $1 an hour and he or she can make one shirt every hour. A worker in Bangladesh could work building a boat instead of making shirts, but he or she would need to spend 3,000 hours to make one boat. Imagine that a worker in Scotland is paid $25 an hour and he or she can make four shirts every hour. A worker in Scotland could work building a boat instead of making shirts, but he or she would need to spend 100 hours to make one boat. What is the opportunity cost for a worker in Scotland to build a boat? Ⓒa. 4 shirts b. 100 shirts C. 400 shirts d. 1,000 shirts"Accoring to Ricardo's analysis, a country exports any good whose production requires fewer labor hours per unit than the labor hours per unit needed to produce the good in the foreign country. That is, the country exports any good in which its labor producivity is higher than the labor productivity for this good in the foreign country." Do you agree or disagree? why?
- Assuming that there are only two countries in the world, Indonesia and ROW (Rest of the World) which both produce Cloth (C) and Food (F) using labor as factor production. The following table shows the number of hours of work needed to produce one unit of C and F in both countries: Cloth (C) Food (F) Indonesia 1 hour per meter 2 hour per kg ROW 6 hour per meter 3 hour per kgConsider two competitive economies that have the same quantities of labor and capital (K=L), and the same technology. The economies of the countries are described by the following Cobb–Douglas production functions: North Economy: Y = AK^0.7 L^0.3 South Economy: Y = AK^0.3 L^0.7 If half of workers (L) in North immigrated to South, explain how would total output, marginal produc- tivity of labor, and labor’s share of income in the two economies change?Consider two countries, Spain and Russia and two goods, wine and vodka. Labour is the only factor of production. The per unit labour requirements for wine is 2 in Spain and 5 in Russia. Meanwhile the per unit labour requirements for vodka is 2 in each of the two countries. The wages in Spain are 50 % higher than the wages in Russia. 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.
- Suppose that Country A and Country B can produce the following numbers of Chairs and Printers per worker per day. Which of the following is true? Country A Country B 25 Chairs 10 Printers 4 Country B has Absolute Advantage (in both products), and Country A has Comparative Advantage in Printers. Country A has Absolute Advantage (in both products), and Country B has Comparative Advantage in Printers. Country A has Absolute Advantage (in both products), and Country A has Comparative Advantage in Printers. Country B has Absolute Advantage (in both products), and Country B has Comparative Advantage in Printers.Consider an economy with two countries and two goods. Unit labor requirement for each product is given in the table below. Domestic Foreign Apple 1 4 Orange 2 1 Available Labor 1,000 7,000 Suppose that Domestic and Foreign can trade apple in exchange for orange at 1-to-1 ratio. Assume that consumers also prefer consuming at one apple for every orange. Calculate the increase in consumption of orange in Foreign after trade opens. Report your answer in 3-decimal precision. Ex: If your answer is 666.54634654674, then 666.546.Turkey Greece Olives 7. Taxtilea The numbers in the table above represent the number of labor hours it will take to produce one unit of the gren pod. Based on the table above, if complete specialization occurs and Greece has a labor force of 56,000 hours of labor, then after trade begins, k will produce O a. 7,000 units of olives O b. 7,000 units of textiles Oc. 14,000 units of olives or 16,000 units of textiles O d. 8,000 units of olives
- There are two states: Apple State and Banana State. There are four homogeneous goods, one factor input (labor), and unit labor requirements are given in the following table. In addition, wage rate in Apple State is $2 and that in Banana State is $3. If two states agree to trade goods freely, which product(s) will Apple State produce? 0 0 0 0 Textile Fish Soybean Corn Units of labor required per unit of output Apple State Soybean Textile and Fish and Corn Fish, Soybean and Corn Corn 5 4 3 2 Banana State 2 2 4 4What is the cost ratio of capital goods to consumer goods in Germany? What is the cost ratio of capital goods to consumer goods in France? Solve for a terms of trade ratio that will be mutually beneficial for both nations so that they will want to engage in trade with one another.Discuss scale economies as they apply to trade.