User Account

All Pages

Exports labor-intensive goods experiences reduced

Assignment Help Macroeconomics
Reference no: EM133280210

Question

Assume that a small, open economy that exports labor-intensive goods experiences a reduced world market price for its export goods. Illustrate what effect this price drop will have on the country's factor prices and resource allocation with the help of production possibilities curve with capital-intensive goods on the x-axis, and labor-intensive goods on the y-axis and a budget line (slope - p_x/p_y).

Reference no: EM133280210

Questions Cloud

Highway deaths among young adults decrease : If a state imposes a beer tax that increases the price of beer by 20%, by how much will the number of highway deaths among young adults decrease?
What might happen to economic marketplace : What might happen to an economic marketplace if typical regulations did not exist, such as antitrust, health and safety, or unfair practices?
Canada pension plan : The Canada Pension Plan (CPP) is a federal government program that provides people with retirement income.
Elasticity of demand for french wine : If the Trump 25 percent tariff on French wine caused imports of French wine to fall by 50 percent, what was the U.S. price elasticity of demand for French wine?
Exports labor-intensive goods experiences reduced : Assume that a small, open economy that exports labor-intensive goods experiences a reduced world market price for its export goods.
About the price elasticity of demand : What can you conclude about the price elasticity of demand within this price range
Explain two factors that influence workers supply of labour : Identify and explain two factors that influence a workers supply of labour. Explain two factors that influence supply of labour
What is the becker-degroot-marschak procedure : What is the Becker-DeGroot-Marschak procedure. Explain how this procedure elicits true willingness to pay?
Graph production function and average product : Graph production function and Average Product. Assume that MAXIMUM number of workers hired is 225 labor units. What will be level of production?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd