« previous next »

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 184 times)

dalyningkenk

  • Hero Member
  • *****
  • Posts: 598
on: Jun 30, 2018
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
Reply #1 on: Jun 30, 2018
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
« previous next »
 

Did you know?

According to the CDC, approximately 31.7% of the U.S. population has high low-density lipoprotein (LDL) or "bad cholesterol" levels.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage, During the Pullman strike in Chicago, workers protesting wage cuts did $340,000 in property damage,
A Motor Unit A Motor Unit
Schematic Diagram of the fluidized bed for the experiment (CHE415 Unit Operations) Schematic Diagram of the fluidized bed for the experiment (CHE415 Unit Operations)
Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
Active solar technologies use for heat, cool, and produce electricity Active solar technologies use for heat, cool, and produce electricity
Find the length of x to the nearest tenth of a unit. Find the length of x to the nearest tenth of a unit.
Video: Methods of carbon dioxide transport - carbaminohemoglobin and bicarbonate ions

For a complete list of videos, visit our video library