Find autarky relative price of cars in economy

Assignment Help Business Economics
Reference no: EM131239881

1. Assume that, in autarky (pre - trade), an economy has 150 workers and the MPLC is two cars and the MPLB is five boats. Find the autarky(pre – trade) relative price of cars in this economy.

2. Suppose that: In Malaysia the unit labor requirement to produce a pound of rice and a pencil are 1 and 2 hours of labor respectively; In Indonesia, the unit labor requirement to produce a pound of rice and a pencil are 2 and 3 hours respectively; each country has 10,000 hours of labor to allocate between the production of rice and pencils; and in autarky, Malaysia consumes 5,000 pounds of rice and 2,500 pencils. When trade occurs, the world relative price of rice PRWPPWbecomes 3/5. Given that the marginal product of labor is the inverse of unit labor requirements, answer the following questions: In Malaysia, what are the marginal productivities of labor in rice and pencil production? In Indonesia, what are the marginal productivities of labor in rice and pencil production? What are the autarkic (pre-trade) relative prices of rice and pencils respectively in each country? In which product will each specialize? What happens to wages in each country when trade occurs?

Reference no: EM131239881

Questions Cloud

How were specific characters engaging : ANALYZE and reach conclusions as to what the director or designer was trying to achieve. Why did they design the movements, sets, lights, sound effects, make-up or costumes that way? What emotions were they trying to make the audience feel?
Evaluate the enthalpy change for the gas : A gas has a constant-pressure ideal-gas heat capacity of 15R. The gas follows the equation of state, Z = 1 + aP/RT. Evaluate the enthalpy change for the gas as it undergoes the state change: T1 = 300 K, P1 = 0.1 MPa, T2 = 400 K, P2= 2 MPa
Explain each given theory of leadership : Explain each theory of leadership. Provide an example of how you might use this theory of leadership in a real world situation.
Establishing a network connection between two points : In your option what are the challenges in establishing a network connection between two points over a large distance, describe your own knowledge of this network configuration.
Find autarky relative price of cars in economy : Assume that, in autarky (pre - trade), an economy has 150 workers and the MPLC is two cars and the MPLB is five boats. Find the autarky (pre – trade) relative price of cars in this economy. Suppose that: In Malaysia the unit labor requirement to prod..
How many total pies did the bakers bake : The result is seven apple-containing pies, eight strawberry-containing pies, five rhubarb-containing pies, three pies containing both apple and strawberry, four pies containing both strawberry and rhubarb, and one apple-strawberry-rhubarb pie that..
How packet switching services differ from other wan services : How do packet-switching services differ from other WAN services? - How is a virtual circuit distinguished from other circuits?
How many chocolate mousse pies are available : Let's borify: If we have A ⊂ Q and B ⊂ Q, and you are given the values of |A|,|B|, and |A ∩ B|, then how can you determine |A ∪ B|? How about |Q \ (A∪B)|?
Analyze real-life events that have occurred in business : Choose ONE of the case options below. Evaluate the case, and respond to each question that follows the case using both theory and practical managerial thinking. Analyze real-life events that have occurred in business and industry.

Reviews

Write a Review

Business Economics Questions & Answers

  What price will he sell services at

number of items dry cleaned and p is the price of each item in dollars. What price will he sell services at?

  The appropriate rationale modeling

Every week, more and more applications are available for Droid-based smartphones. How does this affect the optimal price for Droid-based smartphones? Please show the appropriate rationale modeling you use.

  Social security system

Discuss the Social Security System, current status and future outlook. Be thorough and focus on the economic considerations. Cite at least 6 sources.

  Non-polluting soap or environmentally friendly food products

We’ve all heard the cliché that “nice guys finish last.” Is this true in marketing? Do firms that use good ethical practices have an advantage or disadvantage? Do you think consumers will pay a few cents more for non-polluting soap or environmentally..

  Public in their roles as workers-consumers and taxpayers

When medical care is reimbursed through employer provided insurance whose welfare is ultimately affected when cost of medical care rises: the owners of the firm that pays the premiums, the government whose revenues are reduced because insurance benef..

  Describe the competitive dynamic model

Suppose that, in order to finance a government- sponsored health plan, the government needs to increase spending by 10%. The government plans to finance the higher spending with an increase in taxes. As a consequence of this government policy, the ag..

  Competition lead to quality improvements and cost reductions

How might protective tariffs reduce both the imports and the exports of the nation that levies tariffs? How might the import competition lead to quality improvements and cost reductions by American firms?

  What is the efficient number of lighthouses

Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if a lighthouse were built along the coast where they fish. The marginal cost of building each additional lighthouse is $150. The margi..

  Substantial decrease in the amount of garbage

Many cities have experienced a substantial decrease in the amount of garbage being collected after they changes from levying a tax on each household to pay for the pickup to charging a fee for each bag or can picked up.

  Control the impact of the great recession

The 2007-08 Financial Crisis was called the "Great Recession". It started here in the United States, but it had an enormous contagion effect throughout the rest of the world. Provide examples of how other countries were affected and how they managed ..

  Graph and fully label gregs non-linear budget constraint

Greg earns $10 per hour for work for up to 30 hours of work each week. He is paid $15 dollars per hour for every hour in excess of 30. Greg faces a 15 percent tax rate and pays 3 dollars an hour in child-care expenses for each hour he works. When gra..

  Using EUAC comparison and cash flow approach

Clear Water Company has a down-hole well auger that was purchased 3 years ago for $30,000. It has been depreciated over the 3 years as MACRS-GDS 5-year property. It has an estimated remaining life of 7 years. O&M costs are $13,000 per year. Using an ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd