Question

1. Given the information in Table 1, in a two country and two-product Ricardian model, which of the following statements is (5. Which of the following statements character (s) the Heckscher-Ohli model? A) Constant returns to scale. B) Monopolistic co10. Refer to Figure 1 The Production Possibility Frontiers for Country A and Country B given the Common Community Indifferen13. If the interest parity condition holds, what should be the euro interest rate with todays exchange rate at 51.147 per eu17. According to the IS-LM Model, A) contractionary fiscal policy leads to a rightward shift of the IS-curve. B) expansionaryPart II (60 points): Question 1 (30 points): One of the oldest arguments used to lustify the protection of industries from in

0 0
Add a comment Improve this question Transcribed image text
Answer #1

As per HOMEWORKLIB RULES we are required to solve only 1st question. For the rest of the question post separately.

Solution- Let us assume that 1200 labor hours are available in both the countries. If resources are equally divided we obtain the output matrix.

(D) Any country would have comparative advantage when the opportunity cost of producing one product over another is less as compared to the other country.

Thus only option b is false, rest options a,c and d are true.

Add a comment
Know the answer?
Add Answer to:
1. Given the information in Table 1, in a two country and two-product Ricardian model, which...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply....

    1.Appreciation of the domestic currency will a. increase domestic aggregate demand. b. decrease domestic aggregate supply. c. decrease domestic aggregate demand, and possibly increase domestic aggregate supply. d. cause a deterioration in the trade balance, but have no effect on aggregate supply or demand. 2.In the current exchange rate arrangements of IMF members, a. a substantial number of countries do not have a freely floating exchange rate. b. the European Union countries fix their exchange rates against the US dollar....

  • Question 1: Consider the following Ricardian Model with 2 economies: Germany England Labor Supply 200 workers...

    Question 1: Consider the following Ricardian Model with 2 economies: Germany England Labor Supply 200 workers 200 workers Wine 1000 units/worker 800 units/worker Beer 400 units/worker 300 units/worker (c) Provide the range of the international relative price of wine at which the two countries would trade. (d) Show graphically that Germany gains from trade. Carefully label your graph. (e) Which country has higher wages? What determines the real wage at the national level? Explain. (f) Calculate real wages in France...

  • . In a two-country, two-product Ricardian model, the statement "Germany has a comparative advantage over France...

    . In a two-country, two-product Ricardian model, the statement "Germany has a comparative advantage over France in car production relative to ship production" is equivalent to (a) France having a comparative advantage over Germany in ship production. (b) France having a comparative disadvantage compared to Germany in car pro- duction and ship production (c) Germany having a comparative advantage over France in car production and ship production d) France having no comparative advantage over Germany e) France should produce cars....

  • 12) In the IS-LM Model, assuming a downward slop Model, assuming a downward sloping IS curve...

    12) In the IS-LM Model, assuming a downward slop Model, assuming a downward sloping IS curve and an upward sloping LM curve; an increase in consumer wealth is going to A) cause a rightward shift of the IS curve. B) cause a rightward shift of the LM curve. C) cause a movement along the IS curve. D) cause a leftward shift of the LM curve. 13) The biggest difference between the 2008-09 recession and its aftermath, as compared to the...

  • 27. Given the following Ricardo-type table showing the labor input required per unit of put in...

    27. Given the following Ricardo-type table showing the labor input required per unit of put in each of the two industries in each of the two countries Shirts Brandy 5 days 12 days United States France 10 days 6 days If the countries engage in trade at post-trade prices (terms of trade) of 1 shirt 0.5 brandy, then A) France gets all the gains from trade B) the United States gets all the gains from trade C) neither country gains...

  • 45. In a two-commodity, two-country trading world (as in the offer curve diagrams), if, at a given terms of trade (...

    45. In a two-commodity, two-country trading world (as in the offer curve diagrams), if, at a given terms of trade (price of good X - price of good Y), there is an excess demand for good X, then there must and the price of good X relative to the price of good Y will therefore a. also be an excess demand for good Y; rise b. also be an excess demand for good Y; rise, fall, or not change -...

  • 55. If good A costs $10 per unit in country A and $12 per unit in country B, and if transport costs between A and B...

    55. If good A costs $10 per unit in country A and $12 per unit in country B, and if transport costs between A and B for the good are $3 per unit, an economist would say that a. the good will be exported from A to B. b. the good will be exported from B to A. c. intra-industry trade will occur in the good. d. the good will be a "nontraded good." 56. An implication of the Heckscher-Ohlin...

  • Question 27 Which statement is TRUE regarding the gold standard? a. Very few countries participated in...

    Question 27 Which statement is TRUE regarding the gold standard? a. Very few countries participated in the gold standard prior to the Great Depression b. The gold standard allowed for flexible exchange rates similar to what we have today c. Countries with large trade surpluses would accumulate more gold stocks. d. Gold was fairly evenly distributed across many countries during the 1930s. 3.33 points Question 28 Which of these is a potential cost of adopting another country's currency as its...

  • 43. Suppose that country I is importing good Y and exporting good X. At a terms...

    43. Suppose that country I is importing good Y and exporting good X. At a terms of trade of 1X:3Y, country I is willing to import 90 units of Y and to export 30 units of X in exchange; at a terms of trade of 1X:4Y, country I is willing to import 128 units of Y and to export 32 units of X in exchange. Considering just these two offer curve points, country I's demand for imports over the range...

  • Problem 1. (10 points.) This problem is based on the Ricardian Model. Assume that 2 countries,...

    Problem 1. (10 points.) This problem is based on the Ricardian Model. Assume that 2 countries, Gryffindor and Slytherin, use troll labor to produce 2 goods, swords and brooms. (a) In Gryffindor, 1 troll can produce 2 swords or 4 brooms, while in Slytherin the production of 1 sword requires 5 trolls and the production of 1 broom requires 2 trolls. Assume that there are 100 trolls in each country. Draw a PPF for each country. (b) Which country has...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT