Reference no: EM13872385
Suppose that there are two products: clothing and soda. Both Brazil and the United States produce each product. Brazil produces 100,000 units of clothing per year and 50,000 cans of soda. The United States produces 65,000 units of clothing per year and 250,000 cans of soda. Assume that costs remain constant.
What would be the production possibility frontiers for Brazil and the United States?
Without trade, the United States produces 45,000 units of clothing and 150,000 cans of soda.
Without trade, Brazil produces 75,000 units of clothing and 30,000 cans of soda.
Denote these points on each other s production possibility frontier.
What is the marginal transformation rate for each country?
Should the two countries specialize and trade?
If so, who has the comparative advantage in what product?
Once they specialize, how much does output increase?
What are the terms of trade if the United States trades 1 can of soda for 5 units of clothing?
Are the consumers in each country better off?
What is the labor-intensive good?
What is the labor-abundant country?
What is the capital-abundant country?
Could trade help reduce poverty in Brazil and other developing countries?
How do product and factor prices and wages eventually equalize between the two countries?
|
Equivalent equal monthly payment series in constant dollars
: Suppose you borrow $29000 at 6% compounded monthly over six years. Knowing that the 6% represents the market interest rate, you realize that the monthly payment in actual dollars will be $480.61. If the average general monthly interest rate is expect..
|
|
Prepare the journal entries to record the exchange on books
: Prepare the journal entries to record the exchange on the books of both companies assuming the exchange lacks commercial substance.
|
|
Speculative motive for holding cash
: Which one of the following is a speculative motive for holding cash? Southern Mills sells handmade cotton goods to national retail chains, to regional wholesale firms, and to small specialty shops. You would expect Southern Mills to: A windshield is ..
|
|
Compare the effectiveness of inventory managers at polaris
: Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2012, 2011, and 2010. any trends, and compare the effectiveness of inventory managers at Polaris to inventory managers at its main competitor, Arctic ..
|
|
What is the labor-abundant country?
: What is the labor-abundant country?
|
|
What is the speed od the river current
: A boat, whose speed in still water is 1.70 m/s, must cross a 260-m-wide river and arrive at a point 110m upstream from where it starts (Fig). To do so, the pilot must head the boat at a 45o upstream angle. What is the speed od the river's current?
|
|
Creating a professional learning community
: Discuss how creating a professional learning community can increase the ways teachers seize opportunities for integrating 21st-century skills, tools and teaching strategies into their classroom practice - and help them identify what activities the..
|
|
The need to hold cash simply as a financial reserve
: A firm grants credit with terms of 2/10, net 40. The firm's customers have ___ days to pay in order to receive a _____ percent discount. Which one of the following is the need to hold cash simply as a financial reserve? Which one of the following wou..
|
|
Who is tiresias and what kind of archetype
: Who is King Laios and how is he important to the plot of the play? Who is Tiresias and what kind of archetype? What is Tiresias' most prominent attribute? According to the Chorus, what is fear
|