Question

Consider again that a country with competitive markets for goods and resources operates under autarky. If...

Consider again that a country with competitive markets for goods and resources operates under autarky. If the hourly wage rate is $15, and the price of a machine is $1.50 per yard. What is the labor unit requirement associated with cloth? Explain.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
two countries under autarky (when there is no trade), consider the following hypothetical scenario based on...
two countries under autarky (when there is no trade), consider the following hypothetical scenario based on Ricardian model. Assume throughout that those two countries (Italy and Sweden) are the only two countries in the world, at least for purposes of trade. There are two goods: shoes and calculators. Consumers in both countries always spend half of their income on shoes and half of their income on calculators. The only factor of production is labour. Each Italian worker can produce 1...
Consider a Ricardian environment. Two countries (A and B) make two goods (X and Y). Country...
Consider a Ricardian environment. Two countries (A and B) make two goods (X and Y). Country A has 60 units of labor and country B has 120 units of labor. The unit labor requirements are as follows: X Y Country A 1 2 Country B 2 3 a. Draw the PPF for each country b. Calculate the autarky prices for each country (Px/Py) c. Which country has an absolute advantage in good X? Good Y? Which has a comparative advantage...
Again, consider the Krugman model. Suppose two identical countries that were in autarky (initial equilibrium) move...
Again, consider the Krugman model. Suppose two identical countries that were in autarky (initial equilibrium) move to free trade (new equilibrium). Use the graph with PP and ZZ schedules, and explain how in the new equilibrium compared to the initial equilibrium, consumption per capita of a product, supply quantity of a product, price of a product relative to wage, and number of product varieties available to consumers change. Provide intuition for your results.
In order to conjecture the circumstances in these two countries under autarky (when there is no...
In order to conjecture the circumstances in these two countries under autarky (when there is no trade), consider the following hypothetical scenario based on Ricardian model. Assume throughout that those two countries (Italy and Sweden) are the only two countries in the world, at least for purposes of trade. There are two goods: shoes and calculators. Consumers in both countries always spend half of their income on shoes and half of their income on calculators. The only factor of production...
suppose that the world is composed of just two countries (A and B). Consider that workers...
suppose that the world is composed of just two countries (A and B). Consider that workers (labor) in A are more productive than workers in B in producing the two goods (W and C) that can be produced in both countries. Also, assume that the working conditions (labor laws protecting workers' rights) in country B are not as good as in country A. Nonetheless, markets in both countries are assumed to be perfectly competitive. Under autarky, in which country is...
Suppose a country produces two goods: wine and cloth. Suppose that each cask of wine always...
Suppose a country produces two goods: wine and cloth. Suppose that each cask of wine always requires 4 labor units and 1 capital unit in its production and each bolt of cloth requires 2 and 5 units respectively of labor and capital. This is regardless of the factor prices. (a) If wage and rental rate of capital each equal 100, what are the unit costs of wine and cloth? (b) Suppose wage and rental rate of capital are both 110,...
Consider a country, Home, populated by a labor force of 90 workers. The country can produce...
Consider a country, Home, populated by a labor force of 90 workers. The country can produce two goods, Apples and Bananas. Labor is the only factor of production and it can freely move across sectors. It takes 1/2 unit of labor to produce one Apple; similarly, and it takes 1/2 unit of labor to produce a Banana. Now consider another country, Foreign. Unit labor requirements are as follows: 1 4 unit of labor per Apple, 1 6 unit of labor...
Let us consider a model with two countries (H and F), one factor of production (Labor),...
Let us consider a model with two countries (H and F), one factor of production (Labor), and two goods (A and B). The following table provides the unit labor hours cost structure for the production of A and B in H and F respectively – Country 1 unit of A 1 unit of B H 80 90 F 120 100 Let us also assume that H and F has total labor hours endowment of 72,000 and 60,000 respectively. Using the...
Consider a country, Home, which produces two goods, Cloth and Food, using capital and labour with...
Consider a country, Home, which produces two goods, Cloth and Food, using capital and labour with a constant-return-to-scale technology. Food production is capital-intensive and cloth production is labour-intensive. Capital and labour can move freely between the two industries. Finally, let’s assume that Home’s consumption decisions can be represented using regularly-shaped indifference curves. 3. What will be the impact of the price change on the wage rate and the rental rate of capital in Home? Make sure that you provide the...
3. Use the Ricardian trade to analyze trade between two countries, Germany and Poland, each of...
3. Use the Ricardian trade to analyze trade between two countries, Germany and Poland, each of which can produce two goods, chemicals (C, measured in liters) and steel (S, measured in kilograms with labor requirements as shown in the following table: Hours of labor per unit of output Chemical (in liters) Steel (in Kg.) Germany 1 3 Poland 4 5 a. What would be the relative price of chemicals (Pc /Ps) in each country in autarky? In what a unit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT