What are the gains from trade, Macroeconomics

Assignment Help:

Shows the productivity for the countries Pin and Pang.

Machines Bread

Pin     4 or 3

Pang 3 or 8

1) If the working population of Pin and Pang are both 6 million, divided equally between the two industries in each country, how many machines and bread are currently being produced in Pin and Pang?

2) if the two countries decide to specialize, in which product does each country have a comparative advantage?

3) if the two countries were to totally specialize, what would be the resulting combined totals?

4) what are the gains from trade?

 


Related Discussions:- What are the gains from trade

Survivor Island, the central economic problem facing the group of survivors...

the central economic problem facing the group of survivors

Macroeconomic analysis, Sims (1980) introduced an exciting and ground-break...

Sims (1980) introduced an exciting and ground-breaking new framework which would prove to be extremely insightful for macroeconomic analysis. This is known as vector autoregression

Application of revealed preference approach, Application of Revealed Prefer...

Application of Revealed Preference Approach It has been strongly argued, especially by Sir John Hicks, that one major advantage of revealed preference theory is that it is expl

Principle of acceleration, importance and limitation of principle of accele...

importance and limitation of principle of acceleration

Mathematical presentation of indifference curve, Mathematical Presentation:...

Mathematical Presentation: Consider the utility function U = U(x 1 , x 2 ). Differentiating totally, we get the following: dU = U 1 dx 1 + U 2 dx 2 = 0 (as along the indiffe

Production function stuff, 1. Given the following production function: ...

1. Given the following production function: Y = K1/4 L3/4 Find the following: a. Per worker production function. b. Steady-state capital-labor ratio as a function of d and

Homework, Using a flexible exchange rate system with imperfect capital mobi...

Using a flexible exchange rate system with imperfect capital mobility explain the impact that an open economy has on the effectiveness of monetary and fiscal policy. 2. Using a fl

Trade-off between equity and efficiency, Explain the trade-off between equi...

Explain the trade-off between equity and efficiency. Identify how individuals and organizations are likely to change their behavior as a result of government actions.

Millions of americans purchase, Each day millions of Americans purchase mil...

Each day millions of Americans purchase millions of goods and services. These goods and services are generally readily available, as long as you have the necessary money to purchas

Write Your Message!

Captcha
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!

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