1. Consider the Roy model, where workers in France are deciding whether to mi- grate to the United States. Suppose that the wage-skill locus in France is given by wFR(s) = 600 + 2s, while the wage-skill locus in the United States is given by, wus(s) = max{700, 200 + 4s}. Carefully draw the wage-skill locuses for both coun- tries, and both label and calculate which skill levels migrate to the United States.

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QUESTION 12 Assume that a country Owasia operates in the immobile factor model model and is in autarky. It produces candies and toys, employing 30 people in the former industry and 10 in the latter. Each worker works for nine hours each day. The unit labor requirements in the two industries are 6 hours per toy and 3 hours per candy. Calculate the autarky price ratio, PT / PC, in Owasia. O 2 candies per toy O 1/2 candy per toy 3 candies per toy O 6 candies per toy O 1/6 candy per toy QUESTION 13 Consider a country with 200 workers operating in the immobile factor model. It produces compact fluorescent lamps (CFL) and tables. Each industry employs equal number of workers, who each work six hours per day. The unit labor requirement in the CFL industry is 8 hours per lamp, while that for producing tables is 6 hours per table. Calculate the countryâ s autarky production when it is operating on its production possibility frontier. O 60 CFLs and 80 tables O 62.5 CFLs and 83.3 tables 67.5 CFLs…

Consider the (long run') effects of inward labor migration in the Heckscher- Ohlin Model. Assume that the country trades and the relative price of two goods X and Y stavs constant. Assume X is relatively labor intensive. Intuitively explain how the increase in labor supply affects (relative) output of X and Y and how it affects factor prices ('Rybczynski Theorem'). You may want to use graphs.

Answer question 3

This question is about International Trade. The question is under Chapter 3 (The Specific-Factor Model). Kindly select the right option and help explain. Thank you very much.

What determines output per worker in the One Country Technblogy Model? O Output is produced by all workers. O Output per worker depends on education and capital, even though it is not specified in the model. O Output per worker depends on the productivity of the country and the fraction of workers producing output. O Output per worker depends only on productivity of the average worker.

Consider the standard trade model with two goods and two factors, labour and capital(d) Explain the difference between export-biased growth and import-biased growth,commenting on their economic impact. (e) Discuss two reasons why international trade has strong effects on the distribution ofincome.(f) Explain why economists often consider the effects of free trade on incomedistribution to be less important than the effects on overall welfare. Discuss anexample where the distributional effect has had more lasting importance.

Consider Romer Model 2. Suppose there are two countries, rich and poorone. Both countries have the same population size, L and the same knowledgegeneration productivity parameter, z. At the beginning, time 0, the rich countryhas more knowledge stock than the poor one, Ar0 > Ap0, where subscript labelstime and superscript labels country being rich or poor. However, the fractionof researchers in poor country is larger than the one in rich country, ̄lp > ̄lr .Question 4 Part aIn which country, would you prefer to live in the short-run? How about in thelong-run?How long would it take for the poor country to reach rich one’s per capitaoutput level? Show your results analytically and graphically as well. (If you pre-fer solving this question numerically by assigning values to the above parametersand variables, feel free to do so