User Account

All Pages

Advantage in the production of wine

Assignment Help Business Management
Reference no: EM131654482

Question: P1. Let's assume there are only 2 countries that produce 2 good. More specifically, suppose that the United States (US) and the United Kingdom (UK) each have 2 units of productive resources, 1 used to produce Wine, the other Cloth. The US can produce 40 units of Wine with 1 unit of productive resources and 40 units of Cloth with 1 unit of productive resources. The UK can produce 20 units of Wine with 1 unit of productive resources and 10 units of cloth with 1 unit of productive resources. Using this information, please answer the questions below:

*Who has an absolute advantage in the production of Wine? Cloth?

*Who has a comparative advantage in the production of Wine? Cloth?

*Given specialization, what is production before trade? After trade?

*What are the gains from trade?

*What is the "range" of potential exchange rates between US and UK?

P2. Suppose that in Japan, without a tariff 10,000 cars will be sold per year at an equilibrium price of $20,000. With a $5,000 tariff, supply decreases such that 8,000 cars are produced at $22,500 per car. 

*Use a supply and demand diagram to graphically illustrate the example above.

*Why is the increase in price less than the tariff?

*Who bears the burden of the tariff?

*What are government revenues from the tariff?

*What is the "dead-weight loss" associated with the tariff - i.e., the lost in Producer Surplus and Consumer Surplus?

P3. Finally, graphically explain the negative effects of quotas. How about subsidies? Label and explain results in detail.

Reference no: EM131654482

Questions Cloud

What have you learned that either helps you understand : What have you learned that either helps you understand why you were either successful or unsuccessful
Understand diversity and discrimination : Share the citation, a link, and a short summary of a source that could help your peers to better understand diversity and/or discrimination.
Which shifts have different means using lsd approach : If it is determined that a difference in the average hours of work missed due to illness is not the same for the three shifts.
Bit controversial within the research community : The projective testing area of qualitative research methodologies tends to be a bit controversial within the research community.
Advantage in the production of wine : *Who has an absolute advantage in the production of Wine? Cloth? *Who has a comparative advantage in the production of Wine? Cloth?
Is your leadership vision a combination of multiple theories : In your leadership meeting, each of your colleagues exhibits a different leadership style. The first colleague exhibits the traits of a situational leader;
How all partners experienced a resource and a strategic fit : Provide basic information about the collaboration such as the companies involved, the product, and the form of collaboration - Explain how all partners experie
Dysfunctional family increase student potential difficulties : Discuss why some students are not behaviorally or academically impacted by poverty, divorce, and/or a dysfunctional family when other students
How does federalism affect policy development : How does federalism affect policy development? How then does policy development affect the rights of the individual? What is the overall effect?

Reviews

Write a Review

Business Management Questions & Answers

  Differences between profit and nonprofitwhat do you imagine

differences between profit and nonprofitwhat do you imagine are the major differences in policies culture and personal

  Identify a multinational company operating in australia

Identify a multinational company operating in Australia. Provide a brief description of the company including the following: Number of staff globally

  Discuss the rationale for investigating accidents

Discuss the rationale for investigating accidents. When should an investigation be reported? Why?

  Government increases government expenditure

To restore full employment, the government increases government expenditure by$0.5 trillion. Draw a curve to show the effect of the increase if it is the only change in spending plans. Label the curve AD0+Upper DeltaΔE.

  Logistics processes and supply chain management

Technology has improved logistics processes and supply chain management in the last decade. Explain how information systems or Internet technology has improved inventory management, order processing, or supply chain integration in the aviation ind..

  Security tasks occur throughout an it infrastructure

1. Identifying where cirt monitoring and security tasks occur throughout an it infrastructure.

  Perception of facilitators to advancement

Is there a difference in the perception of facilitators to advancement between males and females?

  Irs ought to represent sum paid ahead

The primary issue is whether the IRS ought to represent sum paid ahead of time under Peaceful project constitutes prepaid wage and along these lines, the prepaid sums are liable to tax assessment?

  Is given an optimal solution and how do you know

Suppose some new equipment was installed that reduces the variable operation cost by two birr per ton in factory X is the shipping schedule remain optimum? If you what is the new optimum?

  Elements of leadership in the context of change

Review essential elements of leadership in the context of change and show how metrics can be used to evaluate the effectiveness of leadership in the context of change.

  Predictions as the one we use in class

CBO uses the same model to make their predictions as the one we use in class.  More sophisticated and detailed, yes, but it's got aggregate demand, aggregate supply, potential output, money demand and money supply

  Elucidate fully using the complete rule

the neighbour failed to do so; may she recover damages from her neighbour? Explain why or explain why not? Elucidate fully using the complete rule.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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