Author Question: Suppose that workers in A can produce 1 unit of S in 3 hours and 1 unit of T in 9 hours. Suppose ... (Read 113 times)

dalyningkenk

  • Hero Member
  • *****
  • Posts: 598
Suppose that workers in A can produce 1 unit of S in 3 hours and 1 unit of T in 9 hours. Suppose that the relative price of S in B is 2. Graph the PPF for country A. Indicate the exact slope of the PPF. Show how the autarky equilibrium is determined.
 
  Illustrate a hypothetical international trade equilibrium, including production and consumption points, and trade volumes for a given (your assumption-be explicit) but permissible value of the international terms of trade.

Question 2

According to the principle of subsidiarity, in which of the following areas should the authority for making decisions be taken from national governments and given to the EU?
 
  A) Pollution of a trans-national waterway
  B) Limits on the hours retails stores are allowed to be open
  C) Highway traffic laws
  D) Recycling requirements on packaging
  E) All of the above.



Danny Ewald

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

The autarky price of S in A is 1/3, so that must be the slope of its PPF. A has comparative advantage in S, so once trade begins it must completely specialize in S. The international terms of trade must lie between 1/3 and 2.

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

In 1835 it was discovered that a disease of silkworms known as muscardine could be transferred from one silkworm to another, and was caused by a fungus.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

For a complete list of videos, visit our video library