Factor Endowments Country A Country B 45 20 Labor Force 15 10 Capital Stock Refer to the table above. If good S is capital intensive, then according to the Heckscher-Ohlin theorem, O country B will export good S O country A will export good S O both countries will export good S O neither country will export good S
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- Suppose a nation ha a total of 24 units of labor, which can be use to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce. What is the maximum quantitiy of guns that can be produced?Assume that only two countries, A and B exist, as shown in the table below. Factor endowments Labour force 45 Capital stock 15 Country A Country B If good S is capital intensive, then following the Heckscher-Ohlin theory: O C. 20 10 O a. country A will export good S. O b. trade will not occur between these two countries. both countries will export good S. both countries will import good S. country B will export good S. O d. O e. A2) Assume that Mexico has a higher labor-to-capital ratio than the United States, leaving the United States mostly endowed with capital relative to Mexico. Assume also that clothing is labor-intensive in production relative to autos. a. Use the factor endowment theory framework to label the two transformation schedules below, indicating which one represents Mexico and which one the United States. Qeioting Relothing Qauios autos b. Assuming similar tastes or preferences as reflected in the two indifference curves shown in part a, draw the pre-trade price line for each country. Which one is steeper? What does this mean? In which country are autos relatively more expensive? 3.
- 4. The table below shows the total endowments of labour and capital in Germany andAustria, respectively.GermanyWorkers 100 Machines 20 Austria Workers 10Machines 4 Assess all the statements below and judge which of them is true and which is false.Provide a short justification for your assessment.According to the Heckscher-Ohlin model…a) …both countries are comparatively abundant in labour.b) …Austria is comparatively abundant in capital.c) …Germany exports should be in goods that use either labour or capital, depending on thegood.d) …Germany exports should be in goods that intensively use labour in production.e) …Austria will lose from trade, since it has both much less labour and capital endowment.The table below presents production schedule of apples and bananas in the country of mistania - assume that these are the only two goods that Mistania produces. Each row represents a specific set of apples and bananas that Mistania could produce. Suppose Mistania was currently at Senario C, producing 10 bananas and 80 apples. According to the data in this table, if Mistania wanted to produc 1 more banana, how many fewer apples will it need to produce? Scenario Bananas Apples A 0 100 B 5 90 C 10 80 D 15 70 E 20 60Player 2 6.6 20 Pleyer 1 10,0 3.5 20.0 Jeleanfe tothe aale How ay equlilvia (in pu straegien) does the ab e have 043
- Having a large endowment of natural resources is necessary for a country to be highly productive in producing goods and services. O True False ASUS f4 f5 f6 f7 f8 f9 f10Consider the following set of diffusion curves. Assume that every unit of wind power represents an additional adopter of the innovation. 174 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 PATRICK SÖDERHOLM AND GER KLAASSEN 1986 1988 1990 1992 1994 1996 1998 2000 Denmark Germany UK: Spain Figure 2. Installed wind power capacity (MW). Which curve appears to have the slowest overall diffusion rate? O a.Denmark O b. Germany OCUK O d. Spainopenvellu mathxl.com/Student/PlayerHomework.aspx?homeworkld=611294898&questionld 1Gmail ITMG 1B Econ 2100 三 Homework: Basics ... Question 10, 1.1 Questio... く onomic If Arif can make 20 pizzas or 10 cakes in one day, the opportunity cost of O A. 1 pizza is half a cake. O B. 2 pizzas is 2 cakes. O C. 2 pizzas is 4 cakes. O D. 1 pizza is 2 cakes. O E. one half a pizza is 2 cakes. st
- Could a nation be producing in a way that is allocatively efficient, but productively inefficient?In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent?What are the three ways that societies can organize themselves economically?