In the Heckscher-Ohlin model, modelling supply chains A is impossible. B can invalidate the factor price equalisation result. C allows countries to specialise in producing different intermediate goods D will imply that wages for skilled labour move in opposite directions in countries with relative abundance of skilled labour and countries with relative scarcity of skilled labour.
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In the Heckscher-Ohlin model, modelling supply chains
| A |
is impossible. |
|
| B |
can invalidate the factor price equalisation result. |
|
| C |
allows countries to specialise in producing different intermediate goods |
|
| D |
will imply that wages for skilled labour move in opposite directions in countries with relative abundance of skilled labour and countries with relative scarcity of skilled labour. |
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- The endogeneity problem when estimating the effects of immigration on domestic wages is best described as A The possibility that the domestic wage distribution determines labour immigration, i.e. reverse causlity. B The possibility that the specification of the wage equation neglects a relevant variable, i.e. omitted variables. C The possibility that the wage equation assumes a wrong mathematical relationship between the variables, i.e. misspecification. D None of the above.a two sector economy has the following input-output technical matrix 0.4 0.3 0.6 0.5 the final demand for the next year is estimamted as 60million for sector Rand 90million for sector s.determine i) total production from each sector in oder to satisfy both intermediate and finanal demand total worth of primamry inputs for the production level in( i)In the same model of the labour market as in the previous question, Select one or more: a. A rise in labour supply will lead to a rise in wages b. Given a constant mark-up a rise in labour productivity will lead to higher wages C. A rise in product market competition will lead to a higher mark-up Equilibrium employment is given by the intersection of the wage and profit curves
- Consider the (‘long run’) effects of inward labor migration in the Heckscher-Ohlin Model. Assume that the country trades and the relative price of two goods X and Y stays constant. Assume X is relatively labor intensive.Intuitively explain how the increase in labor supply affects (relative) output of X and Y and how it affects factor prices (‘Rybczynski Theorem’).You may want to use graphs.Total labour supply is fixed at 100. Output is produced using only labour and the labour demand curve in the urban area is LDu=100-4w and in the rural area is: LDr=100-4w. There is a minimum wage of 14 in the urban area, but the wage is set competitively in the rural area. We assume that there is no unemployment in this model. Labour markets are competitive. (a) What is the wage and level of employment in the urban and rural sector? b) If the minimum wage was abolished, what would be the total gain/loss to (1) workers that were in the urban area before the change, (2) workers that were in the rural area before the change (c) What would be the total change in output if the minimum wage was abolished.Consider the standard trade model with two goods and two factors, labour and capital(d) Explain the difference between export-biased growth and import-biased growth,commenting on their economic impact. (e) Discuss two reasons why international trade has strong effects on the distribution ofincome.(f) Explain why economists often consider the effects of free trade on incomedistribution to be less important than the effects on overall welfare. Discuss anexample where the distributional effect has had more lasting importance.
- If a nation’s labor force receives a significant influx of young workers: a)frictionalunemployment will likely decrease to zero. b)the natural rate ofunemployment is likely to increase. c)the natural rate ofunemployment is likely to decrease. d)the natural rate ofunemployment is unlikely to changeClick to see additional instructions When supplying labour for universities, academics are aware that they can also use their expert knowledge and skills in non-educational jobs. Let w be the wage in the university sector and Wa be the expected wage an academic could earn in industry in their field. and labour supply for industrial professionals will and vertical intercept A. Suppose the industry wage increases. Labour demand for professors will B. Let Ls = 4w denote the initial university sector labour supply. The graph of this supply cure has slope = Ls - 3. The graph of the new labour supply curve has slope and vertical intercept C. As a result the equilibrium wage will D. (Notes upload) Demonstrate why using your graph (you may sketch any representative demand curve). and the equilibrium number of professors working in this sector will (Enter '1' for increase, '0' for remain unchanged, '-1' for decrease, '3' for possibly increase or decrease) Suppose two professors are attracted by…Empirical tests of the HO model have had mixed results. One explanation for this is that Select one: O A it assumes that countries have different technologies. O B. it does not explain the effects of trade on income. OC. the Ricardian model is more detailed. OD. it is difficult to measure factor endowments.
- The wage elasticity of labor supply can be calculated using the following approach:Group of answer choices The labor force participation rate / the inflation rate % change in wage / % change in quantity of labor supplied % change in quantity of labor supplied / % change in wage % change in quantity of labor supplied / the savings rateRicardian Model. Consider two countries: A and B. Labour is the only factor of production for goods X and Y. Consider the following matrix of unit labour requirements. X Y Labor Endowments Country A aLx = 8 aLy = 4 240 Country B aLx* = 6 aLy* = 2 120 Which country has an absolute advantage in producing good X? Good Y? Which country has comparative advantage in producing good X? What is the autarky relative price of good X for country A? For country B? Draw the world relative supply curve RS for good X. Label all the axes (relative price of good X on the vertical axis and world output of x relative to y on the horizontal axis) and the relevant points. Suppose that the world relative demand RD for good X is given by: (Px/Py) = 7 – 9 * ( ( Qx +Q*x) / (Qy + Q*y) ). With free trade: (i) What will be the equilibrium world relative price of good X be equal to? (ii) Calculate the equilibrium wage rate w in A relative to that in…Skill Circle Model Assume a firm incurs overall labor costs of $22 per hour- which includes wages and training costs. Unit training costs equals $160/h and the wage equals $20/h. How many firms are there?