Project #83089 - International Economic

1- Output per Worker

                Vietnam           Mexico

T-Shirts            40            90

Broccoli             20          30

The table above shows output per worker in Vietnam and Mexico for the production of T-Shirts and broccoli.  Based on this information, which country has absolute advantage in the production of T-shirts?  

Answer: 

2- Output per Worker

                  Vietnam            Mexico

T-Shirts           40                 90

Broccoli            20               30

The table above shows output per worker in Vietnam and Mexico for the production of T-Shirts and broccoli.  Based on this table, calculate the opportunity cost for producing broccoli in Vietnam.  

Answer: 

3- Output per Worker

           Vietnam       Mexico

T-Shirts     40                90

Broccoli    20                30

The table above shows output per worker in Vietnam and Mexico for the production of T-Shirts and broccoli.  Based on this information, which country has comparative advantage in producing T-Shirts?  

 Answer: 

 

  

4- Output per Worker

              Vietnam                        Mexico

T-Shirts         40                            90

Broccoli       20                              30

The table above shows output per worker in Vietnam and Mexico for the production of T-Shirts and broccoli.  Based on this information, if Mexico and Vietnam trade, which country is expected to produce broccoli?  

Answer: 

5- Output per Worker

           Vietnam              Mexico

T-Shirts       40              90

Broccoli      20              30

The table above shows output per worker in Vietnam and Mexico for the production of T-Shirts and broccoli.  Based on this information, if Mexico and Vietnam trade, what is the upper bound for the terms of trade for broccoli? 

Answer: 

6- Factor Endowments

  France          India

Land 700         4000

Labor 100       2000

The table above shows factor endowments for France and India.

What is the Land/Labor ratio for India?  

 

1- 1/2

2- 2

3- 1/7

4- 7

 

Answer:

7- Factor Endowments

        France      India

Land 700          4000

Labor 100        2000

The table above shows factor endowments for France and India.  

Which country is relatively land abundant?  

 Answer: 

8- Factor Endowments

         France      India

Land 700          4000

Labor 100        2000

The table above shows factor endowments for France and India.  

Suppose that production of a unit of rice requires 3 acres of land and 1 worker.  Production of a unit of paper requires 8 units of land and 2 workers.  Based on the factor endowments model and the table above, which country has comparative advantage in paper?  

1- India

2- France

 

 Answer: 

9- According to the factor endowments model, countries have comparative advantage in the good that is {1- intensive 2- cheaper 3- abundant } in the factor in which that the country is relatively  { 1- intensive 2- abundant 3- expensive }. choose the right answer.

 

10- Factor Endowments

        France      India

Land   700         4000

Labor  100       2000 

The table above shows factor endowments for France and India.  

 

Suppose that production of a unit of rice requires 3 acres of land and 1 worker.  Production of a unit of paper requires 8 units of land and 2 workers.

If these two countries specialize and trade, what is expected to happen to the price of paper in India?  

            1- It is not possible to predict the change in price.

2- It will fall, because India will export paper.

3- It will fall, because India will import paper.

4- It will rise, because India exports paper.

 

11- Factor Endowments

          France           India

Land    700               4000

 

 

 

 

Shoes the right answer 

 

The table above shows factor endowments for France and India.  

Suppose that production of a unit of rice requires 3 acres of land and 1 worker.  Production of a unit of paper requires 8 units of land and 2 workers.

Use the Stolper-Samuelson theorem to comment on whether land owners in France are likely to favor trade with India.  

According to Stolper-Samuelson, if the price of a product increases, returns to the factor used  {  1-intensively 2- aundantly} in its production will {1- increase 2- not change 3- decrease }  , and if the price of a product decreases, returns to the factor used   { 1- intensively 2- abundantly} in its production will {1- decrease 2- increase 3- not change   }  .

 

.

In this example, the price of paper in France will  {1- increase 2- decrease  3- not change} because France will {1- import 2- export  } paper.  Therefore, returns to { 1- labor 2- land 3- capital  }   will increase in France, and French landowners will { 1- oppose 2- favor}   trade with India.

 

Shoes the right answer 

Subject Business
Due By (Pacific Time) 09/22/2015 10:00 am
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