Home is as described in problem 1 There is now Home is as described in problem 1. 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.a. Graph Foreign’s production possibility frontier.b. Construct the world relative supply curve. Home is as described in problem 1 There is now

Home is as described in problem 1 There is now Home is as described in problem 1. 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.a. Graph Foreign’s production possibility frontier.b. Construct the world relative supply curve. Home is as described in problem 1 There is now

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter19: International Trade

Section: Chapter Questions

Problem 3QFR

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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. Graph Foreign’s production possibility frontier. Construct the world relative supply curve.
In the figure below, AB is the production-possibility curve of Canada. I and I are two of the community indifference curves of Canada. With free trade, the international price ratio is 0.33 bushel of wheat/bale of cotton, and Canada will export: Wheat (bushels) P. R 80 A 60 50 0 S₁1 25 A eighty bushels of wheat. B twenty bushels of wheat. forty bales of cotton. D sixty bales of cotton. I₁ Canada I2 65 Co B C1 85 Q -S Cotton (bales)
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Suppose Argentina (A) and Bolivia (B) only trade with each other and they both produce the same two goods: grocery (G) and fish (F). Given its resources, Argentina can produce either 2 units of grocery per day or 1 unit of fish; Bolivia can produce either 5 units of grocery or 4 units of fish. a. If there were no trade, what would be the local price of fish in each country, measured in units of grocery? b. If trade is allowed, which country will export fish and which country will export grocery (if any)? c. Suppose Argentina offers to buy fish from Bolivia for 1.20 units of grocery. Does Bolivia accept the trade? Why or why not? d. With trade, what are the bound of the price of fish, measured in units of grocery?
Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Technology is the same in the two countries. X is capital-intensive; A is capital-abundant. Analyze the effects on the terms of trade and the welfare of the two countries of the following: A's welfare Event a. An increase in A's capital stock. Terms of trade effect B's welfare
Consider two countries Home and Foreign producing goods using only one factor of production, Labor. These are the marginal products of labor. Home has 100 people and foreign has 50 people. Home: Wheat 4 bushels Cloths 2 yards Foreign: Wheat 1 bushel Cloths 1 yard Assuming there is no trade, draw production possibility frontiers of two countries. With no trade, what are the relative prices of wheat and cloths in two countries? What will happen when they begin to trade?
France Germany Cheese 2 kilograms 1 kilogram Cars 0.25 0.5 b. What is the relative price of cheese in France if it does not trade? In Germany? c. What is the opportunity cost of cheese in France? In Germany? d. Which country has a comparative advantage in cheese? In cars? Explain your answer. e. What are the upper and lower bounds for the trade price of cheese? f. Draw a hypothetical PPC for France and label its slope. Suppose that France follows its comparative advantage in deciding where to produce on its PPC. Label its production point. If the trade price of cars is 5 kilograms of cheese per car, draw a trade line (CPC) showing how France can gain from trade.type solution pls
Draw the production possibility curve for each country using the data provided in the table. b. Which country has an absolute advantage in what product? Which country has a comparative advantage in what product? Show your work! c. Without trade, what is the price of food in terms of computers for both countries? Showyour work! d. What is the range of prices (i.e., the CPC) at which trade can occur? Also, show (a) the possible CPC for each country and (b) the possible production and consumption possibility lines for both countries after trade. Show your work!
Now, please help me with part g and h. Thank you
Help Save & Exit In the figure below, AB is the production-possibility curve of Canada. The line PQ shows the price ratio of one bushel of wheat/bale of cotton. The international price ratio is 0.33 bushels of wheat/bale of cotton as shown by the line RS. I₁ and I are two of the community indifference curves of Canada. After Canada engages in free trade, it will: Wheat (bushels) P. 80 60 50 0 R Sii 25 Multiple Choice Canada 1₂ 65 Co B 85 produce and consume at point Co- produce at point S₁ and consume at point Co. Cotton (bales) Prey www Su
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Country A can produce 20 units of wheat or 10 units of corn, while Country B can produce 15 units of wheat or 5 units of corn. Which country has the comparative advantage in producing wheat?