According to the Heckscher-Ohlin model, the opening of trade between Brazil and China should cause Brazil to export and import_‒‒‒‒‒‒- 1) Both goods; neither good 2) Shoes; food 3) food; shoes 4) Neither good; both goods
Q: A city government is considering two types of town-dump sanitary systems. Design A requires an…
A: Often referred to as CBR, the benefit-cost ratio is an indicator used in project assessment as well…
Q: Discuss the measures of the monetary aggregates that is composed of the most liquid asset
A: The monetary aggregates refer to monetary measures. Typically, the monetary measures are divided…
Q: The table shows the supply schedules of B's and G's (the only candy sellers in the market) Quantity…
A: Market supply is obtained by adding the individual supplies of all the firms in an economy.
Q: Individuals whose current health status is poor will likely derive larger marginal utility benefits…
A: Marginal utility is the extra utility received from consuming one additional unit of the commodity…
Q: For the cash flows shown, determine the future worth in year 5. Cash Flow($/year) Estimated / Per…
A: The cash flow diagram is given by From 1 to 4, the uniform cash flow is (A) is 6000.At time 0, cash…
Q: An income elasticity of 2 for watermelon juice indicates that: (a) Watermelon juice is inferior…
A: Income elasticity refers to the percentage change in the quantity demanded of a goods or service…
Q: 1. Using the midpoint method, compute the elasticity of demand between points A and B. Is demand…
A: An index that measures and quantifies how sensitive the quantity (Q) demanded of a good or service…
Q: 3. The revenue function of a certain item is R(x) = 400x - 2x. The marginal cost of the item is…
A: The cost function refers to the mathematical presentation of the costs of the firm:
Q: A solid-waste recycling plant is considering two types of storage bins. Use ROR evaluation and an…
A: The incremental rate of return shows the rate of return that will be earned because of incurring…
Q: Factor price (S) 11 10 9 65 0 $210; $1 $6; $2 $16, $2 $120:-$2 10 57:51 20 shown below apply to a…
A: Economic profit, also known as pure profit or supernormal profit, is a measure of a company's…
Q: Assignment One Topic: Farm fertilizer In 2019 the Dutch Parliament decided they were going to…
A: Analyze the Dutch livestock farm closures in 2019:Explore the reasons behind the Dutch Parliament's…
Q: (Figure: Water Market) Refer to the figure. If a price floor gets set at $8 per gallon, what is the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: demand model to show a consumer surplus that reflects a demand curve that hits the y-axis at $300…
A: Consumer surplus is the difference between the highest price a consumer is willing to pay and the…
Q: Fiscal policies determine ________ and monetary policies address ________. discount rate :…
A: Fiscal policy refers to policy made by government to influence economy by adjusting tax rate,…
Q: 12. Suppose that events A and B are complements. From this, we know that: both events always occur…
A: This can be defined as a concept that shows when one event is going to occur the other event did not…
Q: In a macro model where the marginal propensity to consume out of disposable income is 0.80, the net…
A: Multiplier states that when in an economy any factor is increasing or changing which can affect the…
Q: Don't use chatgpt Q1. Why might international trade reduce measured inequality in the United…
A: International trade refers to the exchange of the goods or service between the nations around the…
Q: . In a competitive labor market, demand for workers is QD = 9, 900-100W, and supply is Qs = 2,000+…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve. The…
Q: price elasticity of supply between points A and B
A: The following formula must be used to determine the price elasticity of supply between places A and…
Q: a. Does the production function exhibit constant returns to scale? Show whether it exhibits CRS or…
A: Returns to scale in economics is used to study how the change in inputs by a certain proportion…
Q: Some community rating regulations in the health insurance market require insurance companies to…
A: Health insurance is a kind of insurance coverage that pays for medical, surgical, and some of the…
Q: i) What is the marginal propensity to consume in period 1 out of first period income (@c₁/Əy₁) if…
A: i) Marginal Propensity to Consume in Period 1To calculate the marginal propensity to consume in…
Q: The production of electricity creates pollution. When deciding how much electricity to buy,…
A: Cost of Pollution:The cost of pollution refers to the economic and environmental impacts associated…
Q: 3. What is the future value in year 10 of the series described in Problem 2?
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Consider a firm with the following cost function: T C = 8 + 5Q + 2Q2 , the marginal cost associated…
A: The cost function: Marginal cost function: The total cost function represents the total cost…
Q: If the inflation target is 2% and inflation is 10.7, what is the inflaiton gap?
A: Inflation is the rate at which the general level of prices for goods and services rises, leading to…
Q: Is it possible to find equilibrium prices in a linear exchange model for six countries whose…
A: International trade refers to the exchange of goods, services, and capital between countries or…
Q: Clan Goods Mitary Goods Cvillan Goods Military Goods A OOC 0 A 40 0 Duckistan Production…
A: PPC: Graphical representation of the combination of two goods that can be produced in the economy in…
Q: The government has instituted a subsidy (paid to the buyers) of 3000 pounds per electric car bought…
A: A subsidy is an economic help or help supplied through the authorities or any other corporation to…
Q: Consider the payoff matrix below, which shows the advertising strategies of two competing firms.…
A: Nash Equilibrium is a concept that determines the optimal outcome of a game where no player has an…
Q: The price elasticity of toy cars that you sell is-3.00 [negative 3]: you currently charge a price of…
A: Price elasticity of demand refers to the percentage change in the quantity demanded of a goods or…
Q: 100 DRYERS 88 2288 22 22 90 80 70 60 50 40 30 20 10 C I D 10 20 30 40 50 60 70 80 90 100 WASHERS B…
A: Production possibility frontier or PPF shows the different combinations of two goods that can be…
Q: From the previous analysis, you can determine that as Eleanor increases her production of knit caps,…
A: With increasing production of knit, the foregone cutting board increased from 1 to 2, the foregone…
Q: Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta…
A: Government-set price controls are government regulations that set the maximum or minimum price that…
Q: 3. If the exchange rate changes from 1.50 Canadian dollars per U.S. dollar to 1.67 Canadian dollar…
A: The exchange rate between Canadian dollars and US dollars is 1.50 Canadian $ per US $. It changes to…
Q: Average fixed cost (AFC) A) falls as output falls. B) rises as output falls. C) rises as output…
A: The Fixed cost refers to the cost that does not change with change in the level of output. The fixed…
Q: Consider a simple demand-and-supply model of a competitive labour market in a small town. The demand…
A: Demand refers to the quantity that a consumer wishes to buy at a given price in given period of…
Q: Sabrina prefers $22.00 now to $25.00 one year from now but prefers $25.00 one year from now to…
A: Time preference, which is the idea that people value money differently depending on when it is…
Q: Suppose we have the following scenario: Multiplier: 1.2 Tax Rate: 16% Increase in spending: $175…
A: Change in budget deficit = Change in government expenditure - Change in tax revenueChange in tax…
Q: Chemical producing factories are located upriver from a water-ski club. The graph shows the market…
A: Marginal Social Cost (MSC) is a monetary idea that represents the extra fee imposed on society as a…
Q: PS4.2 (a) What Optimal Level of Output (q*) will a Firm Produce given the following? MC(q) = 3 + 2q…
A: Marginal cost is the alternate in complete manufacturing fee that comes from making or producing one…
Q: A. Find equations for the firm’s fixed cost (FC), variable cost (VC), average total cost (ATC),…
A: The Fixed cost is the cost that is incurred irrespective of the level of output that is produced ,…
Q: The State of Chiapas, Mexico, decided to fund a program for improving reading skills in elementary…
A: The first cost is $300,000. Update amount at every 5th year forever is $170,000The first cost is the…
Q: What is the of the measures of the monetary aggregates is composed of the most liquid assets
A: Monetary aggregates refer to various categories of money supply in an economy, typically classified…
Q: 2. Choose 1 country from Latin America, or Africa, or Asia. Find its birth (fertility) rate, death…
A: The birth rate of a country is a very important indicator along with the mortality and the…
Q: Suppose the government of Marina decides to pay for public radio by taxing people on the basis of…
A: Taxation is crucial in today's economic setting because it provides governments with revenue to…
Q: Ben is exhausting his money income consuming products A and B in such quantities that MU₂/Pa = 5 and…
A: Marginal utility refers to the additional utility that a consumer gets by consuming an additional…
Q: The following graph shows labor markets in the United States and Mexico. The horizontal axis denotes…
A: Immigration refers to the process of individuals or groups moving from one country to another with…
Q: The market for French champagne in a small village consists of two consumers: Antoine and Bruce.…
A: Consumer surplus is an economic measure that represents the monetary gain or benefit that consumers…
Step by step
Solved in 3 steps
- In the Heckscher-Ohlin-Vanek model with trade a country that is labour abundant will export the good that is labour intensive. export the good that is capital intensive. have positive trade balance have positive labour content of trade.Choose four countries. One country in North America, another country in Central America, another country in the Caribbean and another country in South America and indicate, using the gravity model, which factors should increase or reduce trade between those countries. After that, choose a country in Europe and indicate, using the Gravity Model, how the intensity of trade changes with five countries. You must take into account the concept of the gravity model and the factors that affect trade such as language, culture, trade agreements, among others. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Consider an international trade model consisting of three countries X, Y, and Z. Suppose X uses domestically, sends of its production to Y, and sends of its production to Z. Suppose Y uses domestically, sends of its production to X, and sends of its production to Z. Suppose Z uses sends of its production to X and sends of its production to Y. Assume this is a closed Leontief model. If we know country Z produced 28 thousand units of goods, then country X produces country Y produces thousand units of goods. of its production of its production of its domestic goods, thousand units of goods and
- Trade theories suggest that both countries gain from trade. In a 2-country, 2-good model, we assume the 2 states—Futland and Tandam share a common currency (allowing us to ignore exchange rate), they both have the same wages, and they both produce two goods: bicycles and boots. The units of labour requirement are shown below, assuming constant returns to scale. Production Techniques: Units of labour hour required per unit output Tandom Futland Bicycles 90 hours 120 hours Boots 30 hours 50 hours Define opportunity cost. Using the table above, calculate the opportunity cost of bicycles in terms of boots and the opportunity cost of boots in terms of bicycles for each of the countries.Trade theories suggest that both countries gain from trade. In a 2-country, 2-good model, we assume the 2 states—Futland and Tandam share a common currency (allowing us to ignore exchange rate), they both have the same wages, and they both produce two goods: bicycles and boots. The units of labour requirement are shown below, assuming constant returns to scale. Production Techniques: Units of labour hour required per unit output Tandom Futland Bicycles 90 hours 120 hours Boots 30 hours 50 hours iii. Which country has a comparative advantage in the production of each of the two goods?Trade theories suggest that both countries gain from trade. In a 2-country, 2-good model, we assume the 2 states—Futland and Tandam share a common currency (allowing us to ignore exchange rate), they both have the same wages, and they both produce two goods: bicycles and boots. The units of labour requirement are shown below, assuming constant returns to scale. Production Techniques: Units of labour hour required per unit output Tandom Futland Bicycles 90 hours 120 hours Boots 30 hours 50 hours i. Briefly explain absolute advantage theory by Adam Smith and comparative advantage theory by David Ricardo. Which country has an absolute advantage in the production of each good?
- Is it possible to find equilibrium prices in a linear exchange model for six countries whose directed graph looks like the one below, and why? The arrows have the usual meaning, for example, the arrow from A to B means that country A is selling its product to country B. A BA C- D F E a. No, because it is not possible to go from C to F following the arrows. O b. Yes, because it is possible to go from any country to any other country following the arrows. Oc. Yes, as long as the countries' governments are conservative. Od. Yes, as long as inflation is low. O e. No, because equilibrium prices never exist.Suppose the Heckscher-Ohlin model was modified to allow for technology differences to exist between two trading countries. How would this change the Heckscher-Ohlin model's findings on factor prices, goods prices, and the gains from trade for each factor/industry over time? Also, explain how you would determine which good a country would import and which good a country would export.Suppose there are two countries Peru and Japan that produce Food and Fuel. Peru can produce 7,523 units of Food or 17,853 units of Fuel using a labour force of 8000. Japan can produce 5,733 units of Food or 24,156 units of Fuel using a labour force of 5000. (g) If the terms of trade is 2 to 1 in favour of the country with the comparative advantage in food. Determine the combination of the two goods that each country will consume after trade if the country with the comparative advantage in fuel imports 4000 units of food. Label this point B and B* respectively. h) Who gains from trade? Who loses? What is the impact if any on the world? (i) What should the terms of trade be to make trade beneficial for BOTH Japan and Peru? Explain.
- Consider an international trade model consisting of three countries X, Y, and Z. Suppose X uses of its production domestically, sends of its production to Y, and sends of its production to Z. Suppose Y uses of its production domestically, sends of its production to X, and sends of its production to Z. Suppose Z uses of its domestic goods, sends of its production to X and sends of its production to Y. Assume this is a closed Leontief model. If we know country Z produced 344 thousand units of goods, then country X produces a 430 thousand units of goods. thousand units of goods and country Y producesWe have export and import data of a country for the last two years. In addition, let's assume that we have the list of the most exported goods along with the countries that this country exports and imports to. How do we know if the trade pattern of this country is compatible with the comparative advantage theory? Also, what data do we need if we want to assess whether this country's trade pattern can be explained by the Hecksher-Ohlin theory?Explain, with a two-country, two-good model, why the Heckscher-Ohlin model predicts only partial specialisation in the production of two goods, while Ricardo's comparative advantage model predicts full specialisation when opening up to international trade. You can opt to present your explanation with the aid of diagrams.
