Lewis dual economies are countrieswith double capital and labor.with a modern manufacturing sector as well as traditional agriculture sector.O are a pair of countries where one specializes in labor-intensive products and the otherspecializes in capital-intensive products.with foreign-owned and domestically-owned capital.

The dual sector model in development economies is commonly known as Lewis dual model named after…

Answered: Lewis dual economies are countries with…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Xenonia has a larger supply of labor than does Inventia. If the labor supply in both countries increases by the same amount while their physical capital stocks remain unchanged, ________. the increase in Xenonia's output will be more than the increase in Inventia's output the increase in Inventia's output will be more than the increase in Xenonia's output Xenonia's income per capita will increase, while Inventia's income per capita will decrease Xenonia's income per capita will decrease, while Inventia's income per capita will increase Exponential growth implies that ________. growth rates can only be positive growth rates will alternate between positive and negative values in every consecutive time period relatively large differences in growth rates will translate into small differences in the level of a quantity after many years of growing relatively small differences in growth rates will translate into large differences in the level of a quantity after many years of growing…
Globalization has also led to the growth of __________, which are large multinational corporations that operate in multiple countries around the world. These corporations have significant economic power and influence and are key players in the global economy, affecting trade, investment, and employment patterns.**- A) conglomerates- B) startups- C) state-owned enterprises- D) transnational corporations.
Consider the Specific Factors model with two countries, Home and Foreign, with two goods, cars (c) and pharmaceutical drugs (d), and three factors, capital K, skilled labour S, and unskilled labour L. The production functions are given by 1 1 F.(Ke, Le) = K. Lễ and Fa(Ka, Sa) = K}S}. That is, skilled labour is specific to pharmaceutical drugs, and unskilled labour to cars. Suppose that the countries' factor endowments are KH = 2 = KF, 1 and SF LH and LF 3/2, and SH 1/2, so that the total labour force is 2 in %3D both countries. The price of capital is denoted by r, the price of skilled and unskilled labour by ws and Wi. Denote the goods' prices by pc and pa, and normalise pd = 1 for simplicity. The demand for cars and drugs in country j = H, F is given by x and r: 2Yi and x 3 på 3 p where Yi denotes aggregate income in country j. (f) Suppose that now that Foreign has a production technology FF (Ke, S.) = 2K Lề and Ff(La, Sa) = 2K S. %3| Describe the effect of free trade in goods but…
Country A has a natural climate that is perfect for growing strawberries - long sunny seasons and plenty of rich, well drained soil. Country A also has a big labor force with agriculture knowledge and can produce 80,000 baskets of strawberries in one growing season. By contrast, Country B’s climate is less well-appointed for strawberries - a shorter summer season with large areas of red clay. They also have a smaller population trained in agriculture. Country B can only produce 30,0000 baskets of strawberries in one growing season. In this scenario and with this information, Country A has Group of answer choices Absolute advantage for producing strawberries Comparative advantage for producing strawberries The lowest synthetic advantage for producing strawberries Elastic advantage for producing strawberries
A country produces two goods: X ( X-axis) and Y ( Y-axis). When the price of x is doubled ( 2x) and the price of Y is tripled( 3x), the isovalue curve becomes steeper. true or false
Consider the Specific Factors model with two countries, Home and Foreign, with two goods, cars (c) and pharmaceutical drugs (d), and three factors, capital K, skilled labour S, and unskilled labour L. The production functions are given by 1 F.(Ke, Le) = K. Lễ and Fa(Ka, Sa) = K}S}. That is, skilled labour is specific to pharmaceutical drugs, and unskilled labour to cars. Suppose that the countries' factor endowments are KH = 2 = KF, and LF = 3/2, and SH LH :1 || 1 and SF = 1/2, so that the total labour force is 2 in both countries. The price of capital is denoted by r, the price of skilled and unskilled and normalise pa = labour by w, and wi. Denote the goods' prices by pc and Ра, : 1 for simplicity. The demand for cars and drugs in country j = H, F is given by x and r: %3D 2Yi and ra 3 pe 1Yi %3D 3 pa where Y' denotes aggregate income in country j. (a) Draw or compute the PPFS of Home and Foreign.
Which of the following was a positive side-effect of Latin America’s import substitution industrialization policies? Select one: a. the growth of transportation and infrastructure facilities b. Balanced fiscal budgets for Latin American governments c. Lower prices of industrial goods for Latin American citizens d. Declining food supplies and agroexport production
Suppose a country experiences an inflow of labor from the rest of the world but the world relative price remains the same. In that country, output of the capital - intensive good will and output of the labor - intensive good will.
Consider the Specific Factors model with two countries, Home and Foreign, with two goods, cars (c) and pharmaceutical drugs (d), and three factors, capital K, skilled labour S, and unskilled labour L. The production functions are given by F.(Ke, Le) = K. Lễ and Fa(Ka, Sa) = K}S}. That is, skilled labour is specific to pharmaceutical drugs, and unskilled labour to cars. Suppose that the countries' factor endowments are KH = 2 = KF, L# and LF = 3/2, and SH = 1 and SF = 1 1/2, so that the total labour force is 2 in both countries. The price of capital is denoted by r, the price of skilled and unskilled labour by w, and w. Denote the goods' prices by pc and pd, and normalise pd 1 for simplicity. The demand for cars and drugs in country j = H, F is given by x and r: 1Yi 2Yi and x 3 ре || 3 pi where Y' denotes aggregate income in country j. (c) Compute the autarky equilibrium in Foreign and show that p > p. Compare equilibrium prices in Home and in Foreign and explain.

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