First state if true or false then always explain your answer please. a) A curved PPF is the result of different factor endowments for the two countries. b) Technology assumption is the same both in Classical and HO Model. c) The workers will oppose free trade in a labor abundant country.

Q: Using a production possibilities frontier (PPF) diagram, determine how does the PPF change  in…

A: The production possibility frontier represents the total output produced with the available…

Q: Define comparative advantage with the use of opportunity cost. Give a real life example of it.

A: International trade refers to the exchange of goods, services, jobs, capital, etc occuring between…

Q: Using a production possibilities frontier (PPF) diagram, determine how does a country’s PPF change…

A: Disclaimer- “Since you have asked multiple question, we will solve the first three question for you…

Q: Suppose a new hormone is discovered that increases the productivity of the workers in producing…

A: The Production Possibility Frontier (PPF) refers to the graphical representation of the maximum…

Q: Between a straight line PPF and concave PPF, which one is more realistic? Why? Defend your answer.

A: Straight line PPF means that the opportunity cost remains same at all points whereas a concave…

Q: a straight line 3. Questions and Problems 3 bowed outward In order for a nation's PPF to be…

A: A production possibility frontier illustrates the combinations of two goods that can be produced by…

Q: The two products, X and Y, and the two nations, A and B. The following equations provide the…

A: A. No, nation A's economy does not exhibit constant opportunity cost in production. In contrast,…

Q: According to the Heckscher-Ohlin model, Brazil will have a comparative advantage in oranges if the…

A: The Hakcher-Oli Allen model is an economic introduction that they can produce the country that can…

Q: Consider the following example of the Ricardian model Units of labor required per unit of output:…

A: Absolute advantage occurs when one entity (a country, individual, or business) can produce a good or…

Q: Use the two-country Ricardian Model with free trade to graphically analyze the effects of the…

A:

Q: If a scale economy is the dominant technological factor defining or establishing comparative…

A: The answer is as follows:-

Q: Assume that Trinbago is a small country that produces wine and motor vehicles, where motor  vehicles…

A: The Heckscher-Ohlin (H-O) trade model is an economic theory that explains patterns of international…

Q: Among the following based on the Heckscher-Ohlin two good and two factor good model, the countries…

A: Production is the process of producing the products for consumption by combining the inputs.

Q: Consider a 2x2x2 Heckscher-Ohlin model with two countries, Australia and Japan. Australia produces…

A: The Stolper-Samuelson Theorem predicts that in India, as trade barriers continue to decline, the…

Q: Movement of Labor and Capital Between Countries In this question, we use the Rybezynski theorem to…

A: A production–possibility frontier (PPF), production possibility curve (PPC), production possibility…

Q: Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles…

A: An economic theory known as the Heckscher-Ohlin model uses variations in endowments of factors…

Q: The life-cycle model explains comparative advantage as follows: a. at the invention stage,…

A: The life-cycle model After the Heckscher-Ohlin model failed to describe the observed pattern of…

Q: produce lemons and coffee, each initially (i.e., before specialization and trade) producing 18…

A: The consumption bundle represents the different combinations of goods that people in the economy…

Q: Suppose countries A and B produce and consume (assuming convex preferences) apples and bananas using…

A: When countries A and B produce and consume apples and bananas using only labour and the Unit labour…

Q: Between a straight line PPF and a concave PPF, which one is more realistic? Why? Defend your answer.

A: Production possibility curve: The production possibility curve is the curve that exhibits the full…

Q: Between a straight line PPF and a concave PPF, which one is more realistic? Why? Defend your answer.

A: A production possibilities frontier or PPF is a graphical representation of a countries production…

Q: In the Heckscher-Ohlin model, suppose the two factors of production are: high-skilled labor (H) and…

A: US has comparative advantage in business  .Business is a high skilled intensive .China has…

Q: With an example, use a production possibility frontier as a straight line, assume that the country…

A: It is assumed that the country produces two goods i.e. good (x) and good (y). Since the country has…

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.