District 12 has 2 units of labor and District 8 has 1 unit of labor. The MPL of textiles in District 12 is 5 and in District 8 is 8 units of textiles per unit of labor. The corresponding MPLs of coal are 3 and 6. Further, assume that in no trade equilibrium each district consumes 1/2 of its output of coal.
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- pics is just for reference i need Q20 solution Question 20 Refer to Table 1-1 in Question 11 and your answers to questions 11-18. (Same scenario as Q 19) Assume that Derryland and Whetonia each has 40 labor hours available and that there is no trade. Each country consumes what it produces. Assume now that, without trade, Derryland spent 28 hours producing cheese and the remaining 12 hours producing bread. Whetonia spent 20 hours producing cheese and 20 hours producing bread. What is the total output of BREAD produced by both countries combined?he AGOA is a country U trade preference program that provides eligible sub-Saharan African countries with duty-free access to the country U market for a wide range of products. This trade pact has several macroeconomic factors that are impacted, including: What does U stand for?Country X has 100 units of labour and country Y has 200 units of labour. Both countries produce computers and televisions. The unit labour requirements are given in the table below: Computers Televisions Country X 50 Country Y 100 Assume that free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to televisions will be Select one: a. 0.02 (or 1/50) O b. 0.013 (or 1/75) c. 0.01 (or 1/100) d. impossible to determine without knowing the relative price of computers in terms of televisions
- Assume that Home and Foreign produce only two goods – Cars and Tvs. Home has 400 units of labour available. In Home, the unit labour requirement in car production is 40 and in TV production it is 20. On the other hand, Foreign has 450 units of labour available. Foreign’s unit labour requirement in car production is 75, while in TV production it is 15. i. Suppose that the number of workers increases from 400 to 800 in Home. Find the new equilibrium relative price. What can you say about the efficiency of world production and the gains from trade between Home and Foreign in this case? j. Suppose that Home has now 800 workers, but they are only half as productive in both industries as we have been assuming. Consider Foreign to have the initial 450 workers only and the same productivity in both industries. Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade compare with those in the case described in problem h.Consider a world with two countries - USA and Foreign and a competitive market of sugar in both countries. Foreign is more effecient in the production of sugar and in a free trade equilibrium, US would import part of its consumption of sugar. Describe graphically such trading equilibrium of sugar. What would be the effect on the sugar price in USA and on the welfare (measured by consumer surplus, pro- ducer surplus and tari§ revenue) of US when US imposes an import tariffs on sugar? Argue using a graph taking into consideration that US is a large sugar importing country.Suppose that the United States currently both produces kumquats and imports them. The U.S. government then decides to restrict international trade in kumquats by imposing a quota that allows imports of only six million pounds of kumquats into the United States each year. The figure shows the results of imposing the quota. Fill in the following table (enter all numeric responses rounded to the nearest penny for prices and as whole numbers for quantities). Without With Quota Quota World price of kumquats S U.S. price of kumquats $ Quantity supplied by U.S. million firms Quantity demanded million million million million 교차 Quantity imported million Area of consumer ▼ surplus Area of domestic ▼ ▼ producer surplus Area of deadweight loss V Price ($ per lb.) $1.75 1.50- of A C D HI B E J K 15 16 Q (millions of lbs.) Sus Du.s. 880
- Under autarky, the equilibrium quantity of chairs in India is 101022 per year. Once free trade is introduced with the world, quantity of chairs produced in India is 174042 per year and quantity of chairs purchased by Indian citizens is 83141 per year. What is the volume of exports of chair from India under free trade?The graph to the right shows the market for water bottles in Thirsty-country with free trade (S1), with tariffs (S2), and with domestic firms only (S3). Shade in the area to show the amount of the tariff collected. Drund irgok: 15 Tritf6-45-15 f 15x (205) Quanty thousandIf one assumes that automobile transportation costs from South Korea to France surpass the price differential in autos that existed before trade between South Korea and France, then, in similar cases trade is:a. Unattainableb. Probablec. Very profitabled. Marginally profitable
- in the attached diagram, given the domestic demand Dx and supply Sx curves, and assuming a fixed amount of import quota is imposed on imports, who will lose the rectangle area MJHN Price (S) 4.5 Sx (domestic) and who will gain the same rectangie area? Pt-Pw+t Pw Dx (domestic) Quantity (millions) 10 20 30 50 70 Oa. Domestic sumers will lose but domestic producers will capture it Ob. Domestic consumers will lose but foreign suppliers will capture it Oc Domestic consumers will lose but the tariff imposing govemment will capture it Od Domestic consumers will lose but no one in society will capture itExport Subsidy. Suppose the home country exports cloth and imports food. Show the impact of an export subsidy by the home country using the relative demand and relative supply curves for cloth. What is the impact on the home country's terms of trade? Make sure you label your graph and explain your reasoning.Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 80 - 4P Supply: Q = 2P - 4 Country B Demand: Q = 32 - 2P Supply: Q = 8P - 8 a) Given the information above which country would be the importer? (Enter A, B) b)What would be the Free Trade Price? c)What would be the Free Trade quantity traded? d) If the importing country imposes a tariff equal to $2 per unit, what would be the new price in the importing country?