Comparative advantage in wheat, Macroeconomics

Assignment Help:

In The No-Trade Equilibrium
Stormlands:
WageL = 24 WageW = ?
MPLL = 4 MPLW = ?
PL = ? PW = 4

Reach:
Wage*L = ? Wage*W = 6
MPL*L = ? MPL*W = 1
P*L = 3 P*W = ?

(a) Which country has a comparative advantage in wheat and why?

(b) Suppose that in the trade equilibrium PL/PW = 1.2. Which good which each country export?

(c) For each country, calculate the real wage in terms of lumber and in terms of wheat.

(d) For each country, compare the values you obtained in part (d) with the real wage in terms of either good in the no-trade equilibrium. Do White Walkers in each country gain from trade?


Related Discussions:- Comparative advantage in wheat

Kind of goods also the mrs, Suppose the utility function is given by: u(x,y...

Suppose the utility function is given by: u(x,y) = 3x+4y. What kind of goods are X and Y and what is the MRS?

Demand for health care services, What is the relationship between quality, ...

What is the relationship between quality, consumption and demand for health care services?

Managers could address the challenge, Analyze the ways in which managers co...

Analyze the ways in which managers could use the Federal Register to determine the single most significant challenge associated with its use, and how managers could address that ch

What has served as money?, As people went from barter societies to more adv...

As people went from barter societies to more advanced economies, money had to be invented. Several things successively served as money in the course of economic evolution. Arrowhea

Way they do at home, 1. Should each person behave in the workplace the way ...

1. Should each person behave in the workplace the way they do at home? Or should each person have a separate set of ethics for each part of their life? 2. What if you are the bo

Factors influence group members, Norms influence behavior conformity among ...

Norms influence behavior conformity among group members. What factors will influence group members to conform to a group's norms, and when will members remain independent? Do indiv

Overall effect of a change in real wages, Q. Overall effect of a change in ...

Q. Overall effect of a change in real wages? The supply of labor The supply of labour L S is assumed to be positively related to the real wage W/P

General principles of marginal and average total cost curves, What are the ...

What are the general principles about marginal and average total cost curves? General principles which are always true concerning a firm’s marginal and average total cost curve

Can growth arise without development, Can growth arise without development?...

Can growth arise without development? Growth is just one feature of development and therefore is an essential but not enough condition for economic development. For example, g

Tennis club, Suppose you belong to a tennis club that has a monthly fee of ...

Suppose you belong to a tennis club that has a monthly fee of $75 and a charge of $5 per hour to play tennis.

Write Your Message!

Captcha
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