Reference no: EM131088083
Public Affairs 856- Midterm Exam 1
1. Hecksher-Ohlin.
a. Draw the "Johnson Diagram", where cloth is labor intensive and food is land intensive, and home is land abundant, assuming that both countries are initially non-specialized under free trade. Analyze the effect of an increase in the amount of labor in Foreign.
b. Show using PPFs for both home and foreign what happens.
c. Explain which groups benefit in each country from the change indicated in part (a).
2. Consider the following figure from the textbook, which depicts equilibrium in a two country Ricardian world:
a. Graph the foreign country's PPF, the relative price line, and the indifference curve that is relevant for determining consumption (put cloth on the vertical axis, wheat on vertical). Be sure to label each curve, to indicate each of the slopes, intercepts (where you can), and equilibrium levels of consumption, production, and exports and imports.
b. Suppose that the foreign country doubles in size (in terms of labor force). Show what happens to the PPF. Carefully indicate intercepts (where you can) and slope.
c. Show what happens to Figure 2-11 when this occurs. Once again, label the quantities you can (some numerical values cannot be determined).
d. Show what happens to Figure 2-11 when instead the MPLc doubles.
Success of a business enterprise
: How would you argue that the success of a business enterprise is significantly influenced by its environment?
|
What was the annual increase in selling price
: Assume that in January 2013, the average house price in a particular area was $291,400. In January 2002, the average price was $208,300. What was the annual increase in selling price?
|
What are differential operating cash flow savings per year
: The Queensland Land and Cattle Company (QL&CC) is one of the largest cattle-buyers in the country. It has buyers at all the major cattle auctions throughout eastern Australia who buy on the company's behalf and then have cattle shipped to Longreach, ..
|
Advantages and limitations of the best buy geek squad
: What are the business advantages and limitations of the Best Buy Geek Squad's use of their wireless pocket PC mobile devices? How have the overcome the limitations of their mobile devices?
|
Draw the johnson diagram
: Draw the "Johnson Diagram", where cloth is labor intensive and food is land intensive, and home is land abundant, assuming that both countries are initially non-specialized under free trade. Analyze the effect of an increase in the amount of labor..
|
Types and uses of data resources
: How have the internet, intranets and extranets as well as World Wide Web affected the types and uses of data resources available to business end users?
|
Debt outstanding and total market value
: Kaelea, Inc., has no debt outstanding and a total market value of $106,000. Earnings before interest and taxes, EBIT, are projected to be $9,700 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 22 perc..
|
Database model gaining acceptance
: Why is the object oriented database model gaining acceptance for developing applications for developing applications and managing the hypermedia databases at business websites?
|
Write out the security market line equation
: Write out the Security Market Line (SML) equation and use it to calculate the required rate of return on each alternative. Compare the expected rates of return with the required rates of return. How do these perform against your predictions?
|