Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

1:         (10 points)Consider the 2×2 Ricardian Model.  Let the following hold:



PRODUCTIVITY (output per worker)


PRODUCTIVITY (output per worker)










Draw the PPF for each country.  Note:  the data above is in terms of output per worker rather than input requirements. 

Identify each country’s opportunity costsin each sector. Interpret.

Define comparative advantageand identify who has the CAin Manufactures?  Agriculture?  Explain.

Show that a reallocation of resources within each country can raise world output.  That is, shift labour within each country so that total world output in each sector rises.  Explain the intuition behind it. 

Calculate autarchy wagesand manufacturing pricesin each country?  Show and explain how you get your result.  (Set P A= 1) Hint:  Set w = P A* productivity Ato find w, then set w = P M* productivity mto find P M.  Check that profits are zero in both sectors and wages are the same across sectors.

Using manufacturing prices as a guide, who will export what?  Explain.

What range must manufacturing prices be in to get free trade equilibrium?  Explain.  What range of prices ensures each country fully specializes?

Show that real wages in each country will rise in the free trade equilibrium.  That is, find nominal wages in autarchy and compare them to nominal wages under free trade.  Then show that (average) wages rise faster than average prices. 

2:         (10 points) Now consider the following (I increase foreign productivity in manu

"Get 15%discount on your first 3 orderswith us"
Use the following coupon

testimonials icon
INSERT SURNAME HERE1Group Decision MakingInstitutional affiliationDateChapter 15 Organizational BehaviorUsually, groups, rather than individuals make...
testimonials icon
Fundamentals of Practical NursingAssignment: I & O Case StudyThe nurse taking care of a post-operative patient need...
testimonials icon
Each region (North, South, West) of the United States experienced the era of Industrialization (1865–1920) differently, with different issues and...
testimonials icon
BUS 475 Week 4 Assignment LT-Communication Plan Outline...
testimonials icon
First, find the mean.Under that column, in cell E37, type =AVERAGE(E2:E36).Under that in cell E38, type =STDEV(E...
testimonials icon
 Review the Monte Carlo Analysis method presented in Chapter 15 of the Hillson and Simon text. Then, determine whether or not you woul...
testimonials icon
.purchase_post_btn img { height: 120px !important; ...
testimonials icon
Your surname 1Insert nameProfessors nameCourse codeFebruary 23, 2019What is the Motivation: Politics, Pressure and Vested Interests?Problems at t...
testimonials icon
 Instructions:  There are three (3) topic areas listed below that are designed to measure your knowledge level sp...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price