Suppose that Country A's no-trade PPF is y = -2x + 40 and Country B's no-trade PPF is y= -x +30, and that both countries have the same amount of labor.   Assuming that trade is now permitted between the two countries, is there a trade (with feasible trade price and trade quantities) that allows Country A to attain the bundle (10,22)?

If a PPF is "bowed outward" from the origin, then which of the following can be true? (check all that apply) The opportunity cost of producing another unit of the good on the y-axis decreases in terms of foregoing units of the good on the x-axis that are given up. The opportunity cost of producing another unit of the good on the x-axis increases in terms of foregoing units of the good on the y-axis that are given up. Inputs may be specialized for different uses Each unit of labor isn't equally productive in producing every unit of each good

If the free trade price is IP and this country imposes a trade tariff of $6, the loss to the economy as a result of this tariff is represented by     (a) area (a) in this graph     (b) area (b) in this graph     (c) areas (c) + (d)     (d) areas (b) + (c) + (d) + (e)     (e) areas (a) + (b) + (c) + (d)

The primary benefit that results when a nation employs its resources in accordance with the principle of comparative advantage is   a) an expansion in capital investment resulting from a reallocation of resources away from consumption b) a larger output resulting from a more efficient use of resources c) greater equality of income resulting from an increase in the number of workers d) an increase in the profitability of the business enterprises resulting from an increase in capital formation

Assume the situation of an exchange economy. (a) Determine the contract curve as an expression in which good I (x₁) is a function of good 2 (x2).(b) Provide a diagram that illustrates the contract curve and the core of the economy.(c) Determine the Walrasian equilibrium prices.

In the Heckscher-Ohlin-Vanek model, labour productivities in the production of a good in the different countries     must be equal to each other     must be equal to productivity of capital in producing the same good     must be equal to each other and the capital productivities for the same good in different countries     none of the above.

Economics Question

Two countries, Home (H) and Foreign (F) trade agricultural and manufacturing goods (A and M, respectively). Production of either good requires skilled and unskilled labor. Unskilled workers can freely move from one sector to another, while skilled workers cannot. Identify mobile and industry-specific factors of production (b) Suppose Home is relatively more productive in agriculture than Foreign. Draw two diagrams, one for H one for F, which illustrate no-trade equilibrium in each county. Compare relative price of agricultural goods in two countries.

On his first day in office, President Donald Trump took the United States out of the Trans Pacific Partnership (TPP), a proposed free trade deal with 11 other countries in the Asia-Pacific region, representing nearly 40% of global GDP. If the TPP had come into existence, the countries in the TPP would NOT be in violation of the most-favored nation (MFN) principle in the World Trade Organization (WTO) by giving each other preferential trade access. Why? A. There is an exception to MFN regarding the Generalized System of Preferences. Because Vietnam, a developing country, was one of the 12 members of the TPP, that exception applies to the whole partnership. B. Because the United States has the largest economy in the world, it gets to decide when MFN applies and when it doesn’t. C. There is an exception to MFN regarding regional trade agreements (RTA), and because all the proposed members inhabit the Asia-Pacific region, the TPP would have been an RTA, and therefore, members could give…

Suppose we are considering a Ricardian model setting, where countries have not yet opened up to trade. Two goods are produced exclusively by domestic labor supplies, sacks of coffee and sugar. Home and foreign maintain the following marginal productivities of labor (MPL) in producing products. The two countries labor pools L = 35 are equal, meaning no differences in labor endowment. Coffe Sugar 6 9 MPL Home 10 Foreign 12 Consider the autarky scenario where countries do not exchange goods. Complete the following questions to obtain the two countries consumption and production equilibria. Q.) Suppose Foreign prefers consuming 5 sacks of coffee for every sack of sugar consumed. Calculate the consumption bundle of Foreign and sketch it on a PPF graph.