Glass 100- Sand (K) 0 Labor(L) 100 0 Concrete 0 0 Labor(L) 100 Sand (K) 100 Suppose that the Italian economy produces two goods: Glass and Concrete. Both goods are produced using Workers (L) and Sand (K). The graphs below show allocations of L. and K to the two industries. Solid Orange curves represent Glass isoquants, while dotted Blue curves represent Concrete isoquants. A) Sketch the production contract curve for this economy. Explain what this represents in words. B) Draw an approximation of the production possibilities frontier for this economy. Explain any curvature or kinks (or lack thereof).
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- Consider an economy that produces two goods , X and Y. Use a production box diagram to construct the production possibility frontier for these two goods. Also indicate the optimal consumption point and price ratio that will prevail. Suppose now that technical progress causes the X isoquants to shift towards the origin. How will this affect the production possibility frontier, the optimal consumption point and equilibrium price ratio for X and YHeckscher-Ohlin: Consider an economy with two goods (cornand potatoes), both produced using capital and labor. Both factors can freely move across sectors. The technologies for the two sectors are given by the following Cobb-Douglas production functions:Suppose there are two countries, Home and Foreign, that produce two goods, fish (F) and edamame (E), using only labor. In the Home country 6 units of labor are required to produce each unit of fish and the same for each unit of edamame. In the Foreign country, 2 units of labor is required to produce each fish and 3 units of labor are required for each unit of edamame. Each country has a labor force of 30 units available for production. Suppose further that consumers in both countries have identical Leontief preferences, utility function U(CF, CE) = min(CF, CE), meaning that they want to consume the two goods in a fixed proportion of one-to-one, i.e. CF = CE (there is no substitution between the goods). Suppose now that the labor force of the Home country is 6 times as big (i.e. 180 units, instead of 30). How does this increase in labor force at Home change the pattern of trade? Will the gains from trade for the Home country be higher or lower now? What happens to the welfare of the…
- Not a previously graded question. Suppose the fictional country of Katmai produces only two goods: millet and microprocessors. The following graph plots Katmai's current production possibilities frontier, and includes six different output combinations given by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply.Suppose China can produce two goods, cloth and food and has three factors of production labor (L), capital (K) and Land (T for terrain). Food is produced using land and labor while cloth is produced using capital and labor, hence, labor is a mobile factor. Keeping in mind the Specific Factors Model, answer the following questions a) What are the production functions for cloth and food? b) Write down the wage equations for each sector and the slope of the production possibility frontier. c) Drive the production possibility frontier for China [hint 4 quarter diagram]An economy has 8 units of labor and 8 units of capital that are allocated between industry X, with the DRTS production function x = K^(1/4)L^(1/4), and industry Y, with the CRTS production function y = K^(1/2)L^(1/2). Derive and graph the Production Possibilities Frontier for this economy. All consumers believe X and Y are perfect complements with tastes U = min (Y, 2X). Calculate production levels that are consistent with tastes and show these in your diagram.
- An economy has 22 units of labor and produces goods x and y. The production functions are x = 0.2L, and y = 0.5Ly, where Lx and Ly represent the labor allocation. Say the economy is currently producing x = 2 units and y = 6 units. This implies that Lx = and Ly= O 10:14 O 10: 12 O 8; 14 O 8; 12 --x--Assume that Max and Min can switch between producing mittens and producing hats at a constant rate. Labor Hours Needed to Quantity Produced in 36 Make 1 Hours Mitten Hat Mitten Hat Мах 2 18 6 Min 2 4 18 9 Refer to Table 3-6. Which of the following points is on Max's production possibilities frontier, based on a 36-hour production period? (18 mittens, 0 hats) (15 mittens, 8 hats) (16 mittens, 10 hats) (0 mittens, 12 hats)Question 13 5 pts For the production function y = 4x1+ 3x2, which of the two inputs is more productive when x1 is 10 and x2 is 10? X1 X 2 neither; for this situation, they have equal marginal products cannot tell from the above information Question 14 5 pts Given the production function y = x1 1/3 x,1/3, what is the marginal physical product of x2 when x1 is 5 and x2 is 5? O 0.75 37 0.19 O 1.11
- The first image I need help with the graph and the second image to solve the problem!Consider an economy that has a labor endowment of L = 40 units. The production functions are x = 0.5Lx and y = 4Ly, where x and y are consumption goods while Lx and Ly represent the labor allocation. What is the equation for the PPF?Please help me solve this macroeconomics problem. Thanks!