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Suppose that the home country is relatively abundant in low-skilled workers and the foreign country is relatively abundant in high skilled workers. Suppose the economy can produce two goods: textiles and computers. The computer industry is relatively capital intensive and the textile industry is relatively labor intensive.
A. What good does the home country have a comparative advantage in producing? Explain.
B. Draw the production possibilities frontier for the home country. Label the autarky point of production. Show where the country will likely produce and consume in the long run after the country open up for free-trade. Depict the trade triangle. Explain.
C. In the model you just described, is the country better off on average or worse off? Is there anyone worse off if so who?
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Suppose there is an increase in the population growth rate. A. Show graphically how this affects the growth rate of both output per capita and total output in the short and long run.
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If Jane gets one year of college she will earn $20 per hour. If Jane gets two years of college she will earn $22 per hour. If Jane gets three years of college, she will earn $24 per hour. If Jane finishes college, she will earn $25 per hour. Jane’s d..
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q.suppose a firm has the total cost functioncq1002q12q2afind the firms marginal cost functionb find the firms average
Explain how total emissions can rise even though emissions per dollar of GDP substantially decline. Which of the two is more relevant for climate change? Why?
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