User Account

All Pages

What are the autarky relative prices of airplanes

Assignment Help International Economics
Reference no: EM13112276

Germany and Japan (star) produce airplanes and cars with the following marginal products of labor. Germany has 200 workers and Japan has 75 workers.

Germany

Japan

Airplanes

MPLA = 4

MPL*A = 2

Cars

MPLC = 3

MPL*C = 6

a) Draw the production possibility frontiers for Germany.

b) What are the autarky relative prices of airplanes (PA/PC) in Germany and Japan?

c) Using an indifference curve, draw a possible autarky equilibrium on Germany's PPF. On your graph, label the production and consumption of airplanes and cars in Germany.

d) Germany and Japan are now open to trade. Draw a possible relative world equilibrium price of airplanes after trade (PWA/PWC) on your graph for Germany.

e) At this world relative price, draw an indifference curve to show Germany's trade equilibrium. What good will Germany import? What good will Germany export?

f) Has Germany's welfare improved with trade? Why or why not?

Reference no: EM13112276

Questions Cloud

Goodness of fitness-small tea company : You own a small tea company, Sweet Leaf, NASDQ ticker symbol LEAF. You are looking at marketing costs versus benefits. Your production manager says it doesn't matter which tea you produce
Hypothesis test-frozen dinner : Your company manufactures low calorie frozen dinners. The advertised calorie content is 200 calories. A consumer activist group, FACT: fat and calories tribunal, is claiming that your product is not consistent.
Determine the density function of product : Assume that random variables X1,.....,X50 are independent and all have probability density function fX(x) = 1/x for 1
Discuss how precise and accurate measurement achieved : Every measurement has a measurement uncertainty. Discuss how precise and accurate measurement can be achieved in spite of the inherent measurement uncertainty.
What are the autarky relative prices of airplanes : Draw the production possibility frontiers for Germany and what are the autarky relative prices of airplanes (P A /P C ) in Germany and Japan?
Z values and percentages for assembly time : The accounting department at Weston Materials, Inc., a national manufacturer of unattached garages, reports that it takes two construction workers a mean of 32 hours and a standard deviation of 2 hours to erect the Red Barn model.
Discuss the significance of atomic nuclear decay : Discuss in detail, one way in which atomic nuclear decay takes place. What is the significance of atomic nuclear decay? Analyze the societal implications of using this process.
Proportion testing on crime rate : Figures for the yearly crime rate (the number of crimes per 1,000 population) in Mississippi, USA from 1993 to 2002 are as follows:
What insurance company charge for policy to break even : Probability is 0.5% that home will suffer the 50% loss due to fire. If we ignore all other partial losses, what premium must insurance company charge for policy just to break even?

Reviews

Write a Review

International Economics Questions & Answers

  Leisure as a normal good for the labor supply function

Think the problem of maximizing u(c,l) subject to pc + wl = w + y, where c is consumption, l (element of (0,1)) is leisure time, and y is non-wage income.

  International trade process

Discuss and describe the difference between absolute advantage and comparative advantage. Determine the significance of each in international trade processes?

  Question about cost structure and transaction

Discuss why the cost structure associated with many kinds of information products and services might imply a market supplied through a small number of large companies.

  Question - comparative advantage

In a day of production, companies in Angola can manufacture 200 liters of oil or 100 kilograms of tungsten. Companies in Namibia can manufacture 160 liters of oil or 60 kilograms of tungsten.

  Difference between a monopolist and competitive firm

Kellogg's, breakfast food people, comprises one of four corporations that control about 92% of its market for breakfast food. Kellogg's would be considered;

  Reason of the decline of dollar against other currencies

The dollar has being weaker against other currencies ever since Bush administration took office. The government did nothing to stem the refuse. From the point of view of economic policy, what would you think was the cause?

  Explain the changing economic variables in china

Explain the changing economic variables in China that influenced McDonald's expansion strategies. Discuss What market model best describes the relationship between McDonalds and KFC in China?

  Provide references

I would have selected JEL industries as it is located in a nation which is part of the European Union and using Euro as its currency.

  Question on market failure

In Florida, huge contraption turns and starts lumbering down next row of juice-laden Valencia oranges. The operator watches his progress on two TV screens in his cab,

  Explain how globalization affects the market economy

As your think tank expands its focus to international and global economic issues, Gabe wishes you to address the following condition and make a report on globalization

  Determine the factors that affect dollar yen exchange rate

n the flexible exchange rate system, discuss the effects of the following events on the exchange rate between U.S. dollar and Japanese Yen: Please indicate whether US$ will appreciate or depreciate.

  Explain the meaning of efficient markets

Describe the meaning of efficient markets. Why might we expect markets to be efficient most of the time?

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