If the two nations operate in autarky, which of the black points (plus symbol) are attainable for Golikia? Check all that apply. Point A Point B Point C ✔Point D Suppose the two nations decide to trade with each other at a rate of one video game console per catnip toy (1:1). On the previous graph, use the green line (triangle symbol) to represent the terms of trade to help you find your answer to the following question. You will not be graded on where you place the line on the graph. Which of the grey points (star symbol) that were not attainable by either country in autarky are attainable once the countries agree to trade, holding all else constant? Check all that apply. ✔Point W Point X Point Y Point Z Suppose Fireton and Golikia engage in trade, and both nations desire the same post-trade consumption bundle. (Note: Assume both countries will not waste any resources.) Fireton will import catnip toys.

Consider a region with two export products (gloves and socks) and two local goods (tattoos and manicures). The production of each export good is subject to localization economies, so each city specializes in one export good. According to Mr. Wizard, “If my two assumptions (one for export products and one for local goods) are correct, all the cities in the region will be the same size.” Assume that Mr. Wizard’s logic is correct. List his assumptions and explain why together they imply the region’s cities will be the same size.

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

Suppose that there are two countries, the North and the South.  Given the North's resources, it can produce 4 Cars in an hour or 1 unit of wheat in an hour.  Given the South's resources, it can produce 1 car per hour or 4 units of wheat in an hour.   Both countries have forty hours in total to produce wheat and cars.  Finally, the goal of each country is to have the most possible cars and wheat, but also to always have an equal amount of each. In other words, 10 cars and 10 wheat is just as valuable as 11 cars and 10 units of wheat, or 10 cars and 11 units of wheat, but 11 cars and 11 wheat would make the country even better off.  The question below relates to the PPF for the North and the South.  While you do not need to turn in a graph of the PPF, they may be helpful to answer these questions.  Finally, the first set of questions refers to a world where the North and South cannot trade, while the second set of questions refers to a world where they can trade.  In the latter set of…

It has been shown that the US has a comparative advantage in capital-intensive goods while China has a comparative advantage in labour-intensive goods. Suppose as a result of trade the US's economy is going to grow by 30% and that of China by 40%. Based on this information, which of the following statements is correct? a) The US has the stronger bargaining power in the determination of the relative price after trade. b) In the US, the employers are better off while the workers are worse off as a result of trade. c) Specialization means that China will produce all the capital-intensive goods. d) China has the stronger bargaining power in the determination of the relative price after trade.

4.3 Suppose that Britain can produce 10 units of cloth or 5 units of food per day (or any linear combination) with available resources and that Greece can produce 2 units of food per day or 1 unit of cloth (or any combination). Britain has an absolute advantage over Greece in producing both goods. Does it still make sense for these countries to trade? Explain.

Create a diagram similar to Figure 1.4 in which demand in both countries is identical and trade arises because of differences in supply. Do another diagram in which supply is identical across nations but differences in demand lead to trade.  

Are the numbers correct

Answer the next question(s) on the basis of the following information. Assume that by devoting all its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. Refer to the above information. The terms of trade will be at or within the 1X=1¹/2Y to 1X = ²/3Y range. Select one: True False