not use ai please don't Assume two countries Japan (JPN) and Bangladesh (BAN) produce Computer (C) and Food (F)using two factors, capital (K) and labour (L), which are mobile across sectors. The production ofcomputer is capital intensive and food production is labour intensive. Further, Japan has 120 unitsof labour and 180 units of capital, while Bangladesh has 100 units of labour and 120 units of capital.The cost of labour is w. The cost of capital is r.Draw a diagram showing the relative demand and the relative supply ofcomputer/food for each country in autarky (approximate positions).I need help to draw the graph as I am really struggling, with what the x and y axis should be labeled and general idea ofwhat it should look like

Given:Japan has 120 units of labor.Bangladesh has 100 units of labor.Japan has 180 units of…

Answered: Assume two countries Japan (JPN) and…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that Sweden and Norway have the following set of production factors (see table below). Suppose further that for the production of one unit of steel it takes two machines and 8 workers and for one unit of bread it takes one machine and 8 workers. Sweden Norway Capital Labour 40 machines 10 machines 200 workers 60 workers a) Which commodity, bread or steel, is relatively capital-intensive and which is relatively labor-intensive? Show how to decide this. b) Which country will export bread and steel respectively? Why? Show how to determine this in a figure or with equations. c) Explain what happens to the return on capital and labor in Sweden and Norway after trade has begun between the countries.
If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products. Instructions: Round your answers to 2 decimal places. a. What is the opportunity cost of producing 1 unit of fish in Islandia? 0.5 unit(s) of coconuts b. What is the opportunity cost of producing 1 unit of coconuts in Islandia? 2 unit(s) of fish c. What is the opportunity cost of producing 1 unit of fish in Mountania? 45 unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? 15 unit(s) of fish e. Mountania v has a comparative advantage in the…
If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products.
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 1000 units of capital and 3000 units of labor: Which country is capital abundant and which one is labor abundant?
Assuming that there are only two countries in the world, Indonesia and ROW (Rest of the World) which both produce Cloth (C) and Food (F) using labor as factor production. The following table shows the number of hours of work needed to produce one unit of C and F in both countries: Cloth (C) Food (F) Indonesia 1 hour per meter 2 hour per kg ROW 6 hour per meter 3 hour per kg
A country has constant opportunity cost of production. With their given resources they can produce either 555 calculators or 1.145 toasters per week What is the opportunity cost of producing one caculator? Enter a number rounded to two decimal places. Do not enter any other words or characters
(Parts a-c) Assume two countries, Gisslovia and Gerardania, both have 1200 units of labor that can be used to produce food or clothing. In Gisslovia it takes 4 units of labor to produce one unit of food and 3 units of labor to produce one unit of clothing. In Geradania it takes 3 units of labor to produce one unit of food and 2 units of labor to produce one unit of clothing. a) If each country allocated one-half of its labor to food production how much food would be produced? b) If each country allocated one-half of its labor to clothing production how much clothing would be produced? c) Suppose Gisslovia only produced food. If Gerardania produced enough food to keep the total amount equal to part a, how much clothing would they produce?
There are two countries, Atlantis and Thule, and two goods, Clothing (C) and food (F) In Atlantis, it takes 3 units of labour to produce a unit of Clothing and 3 units of labour to make a unit of Food. In Thule, a unit of Clothing requires 2 units of labour, and a unit of Food requires 5 units of labour. Assume that Atlantis has 300 units of labour, and Thule has 500 units of labour. (a) What is the opportunity cost of Food in terms of Clothing in each country? (b) Which country has an absolute advantage in which good? (c) Which country has a comparative advantage in which good? Why? (d) Draw the production possibilities frontier for each country (put Food on the horizontal axis). Label axes and slopes. (e) Draw the world production possibilities frontier (assuming labour does not move between countries). Again, put Food on the horizontal axis. Label axes and important points on - 2 - the diagram. (f ) Draw the world relative supply curve (labelled RS) for F/C with the relative price…
Suppose country A has 5000 units of capital and 2000 units of labor while country B has 6000 units of capital and 3000 units of labor. which country capital abundant.
Assume that two countries, A and B, can produce Beef and Barbecues and the production possibilities frontiers of two countries are represented by: Country A: Beef = 30 - 1.25 BBQ and Country B: BBQ = 15 - 0.5 Beef Barbecues are measured in units, beef in kilograms. a) On a single chart, graph the production possibility frontiers for Country A and for Country B. Make sure you use a good scale and mark all your axes and important curves or points. b) Interpret the slope and the shape of the PPF for each country and make the relevant comparisons. c) Assume that each country allocates half of its resources to the production of beef and half of its resources to the production of barbecues. Under autarky (No trade), how much would each country consume of the two products? Plot these points on the graph as Ca and Cb respectively d) Should either of these countries specialize in the production of beef and/or barbecues? If yes, explain which country and which products and why. If they…
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Suppose a country which produces only agricultural goods and electronic goods. Both goods use capital and labour as production inputs, however, the agricultural goods are assumed to be more labour-intensive. On three separate graphs, draw the “original” production possibility boundary (electronic goods on the horizontal axis, agricultural goods on the vertical axis) and illustrate each of the following situations: a. the country observes large increases in immigration; b. there is a technological improvement in the production of military goods only;c. a neighbouring country threatens to invade and the country responds by devoting more resources to military goods.

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