Reference no: EM131130943
Measuring the Gains from Trade. Consider two countries, Tableland and Chairland, each capable of producing tables and chairs. Chairland can produce the following combinations of chairs and tables: All chairs and no tables: 36 chairs per day All tables and no chairs: 18 tables per day Tableland can produce the following combinations of chairs and tables: All chairs and no tables: 40 chairs per day All tables and no chairs: 40 tables per day In each country, there is a fixed trade-off of tables for chairs.
a. Draw the two production possibilities curves, with chairs on the vertical axis and tables on the horizontal axis.
b. Suppose each country is initially self-sufficient and divides its resources equally between the two goods. How much does each country produce and consume?
c. Which country has a comparative advantage in producing tables? Which country has a comparative advantage in producing chairs?
d. If the two countries split the difference between the buyers willingness to pay for chairs and the sellers willingness to accept, in terms of chairs per table, what are the terms of trade?
e. Draw the consumption possibilities curves.
f. Suppose each country specializes in the good for which it has a comparative advantage, and it exchanges 14 tables for some quantity of chairs. Compute the consumption bundles bundles mean the consumption of tables and chairs for each country.
|
How jack ltd should account for results of impairment test
: Determine how Jack Ltd should account for the results of the impairment test at 30 June 2015 and 30 June 2016, and prepare any necessary journal entries.
|
|
The customers of a newspaper salesperson arrive
: The customers of a newspaper salesperson arrive according to a Poisson process with rate λ = 2 per minute. Calculate the probability that at least one customer will arrive in the interval (to, to + 2], given that there has been exactly one custome..
|
|
Bonds outstanding that mature in thirteen years
: Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $1,021.16. What is the firm’s pre-tax cost of debt?
|
|
Current cost of generating electricity
: The passage implies which of the following about the current cost of generating electricity? It is higher than it would be if better technologies for capturing carbon dioxide were available
|
|
Draw the consumption possibilities curves
: Suppose each country specializes in the good for which it has a comparative advantage, and it exchanges 14 tables for some quantity of chairs. Compute the consumption bundles bundles mean the consumption of tables and chairs for each country.
|
|
The number of failures during the fourth
: (b) Suppose that exactly five failures have occurred during the first four weeks considered. Let M be the number of failures during the fourth of these four weeks. Calculate E[M | M > 0].
|
|
Calculate net income to the controlling interest
: Calculate Net income to the controlling interest for the year 2013. Verify the calculation of the balance in the account equity in sub earnings and record the parent company entries with respect to its investment during 2013.
|
|
Identify an ethical issue the organization either faces
: Describe some of the key decisions its management has faced within the past year or two. Identify an ethical issue the organization either faces or has faced in the past. If it has not been resolved, provide an analysis of how the issue should ..
|
|
The durations of the various power failures
: The power failures in a certain region occur according to a Poisson process with rate λ1 = 1/5 per week. Moreover, the duration X (in hours) of a given power failure has an exponential distribution with parameter λ2 = 1/2.
|