Determine welfare effect of a decrease in land

Assignment Help International Economics

Reference no: EM1368165

1) China and Japan have 2factors of production, land and labor. Both countries produce 2-goods, corn, which needs more land, and computers, which needs more labor. Given that China is abundant in land and Japan is abundant in labor, what will be the effect on the terms of trade an increase in Japan's labor supply? What will be the welfare effect of a decrease in land used for corn in China?

2) Explain what each of the following terms are, and explain how each is used in the standard model.
isovalue lines
production possibilities frontier
indifference curve

3) If rice production is land intensive and computer production is labor intensive, though both good require some land and labor, the two-good production possibilities frontier will change in which of the following ways given an increase in available labor?
The curve will outward or inward ? will it biased toward computers or rice ?

Reference no: EM1368165

Questions Cloud

Question on breakeven point : A firm that has total fixed costs of $40,000 sells its output for $250 per unit and has an average variable cost of $150. If the firm's cost and revenue curves are linear, how much output must the firm product to break even?

Benefits of globalization : The world is becoming increasingly interdependent, and bank's consumers have rising choices in where and how they do their banking.

Consent for pediatric clinical trial participants : Assume that you are part of a medical research team, and are tasked with gaining informed consent from the potential participants.

Trade restrictions on international trade : Identify and describe the factors that estimate who actually bears the burden of a tax increase on a specific good, such as gasoline, cigarettes, or some other product.

Determine welfare effect of a decrease in land : China and Japan have 2factors of production, land and labor. Both countries produce 2-goods, corn, which needs more land, and computers, which needs more labor.

Describe the prisoner dilemma : Suppose the following data, and answer the question below. China and England are international trade partners. The following information are expected payoffs for the two countries.

Primary types of medical research : Write down the primary types of medical research, and how does each kind functions to help American health care advance over time?

Public health and clinical medicine : The relationship between the public health and clinical medicine is a significant one, however it has often been a contentious one via the years.

Cost of equity-wacc : What is the component cost of the equity raised by selling new common stock? What is the maximum amount of new capital that can be raised at the lowest component cost of equity?

User Account

All Pages