Home, a small, open economy, uses a mobile factor (labor) and two specific factors (drylands and wetlands)
Question:
Home, a small, open economy, uses a mobile factor (labor) and two specific factors (drylands and wetlands) to produce two goods, cactus and rice. Drylands are only productive in growing cactus and wetlands can only grow rice. Suppose the world-relative price of cactus is higher than in Home. Determine the effect of this price increase on the real wage and real returns on the different types of land.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
Because the worldrelative price of cactus is higher than in Home the small c...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Now suppose the world relative price of cars is PC/PTV = 1. a. In what good will each country specialize? Briefly explain why. b. Graph the new world price line for each country in the figures in...
-
Suppose that a small open economy produces Good X and Good Y using skilled and unskilled labor. Each unit of Good X requires 1 unit of skilled labor and 4 units of unskilled labor, of which 1 unit of...
-
A small open economy with a floating exchange rate is in recession with balanced trade. If policymakers want to reach full employment while maintaining balanced trade, what combination of monetary...
-
Find the area under one arch of the cycloid x = a(t - sin t), y = a(1 - cos t).
-
When does an employer have to submit payroll tax payments?
-
If Mrs. Byrnes urinary Na+ excretion had been measured, would you expect it to be higher than, lower than, or the same as that of a healthy person? Why? How was the saline infusion expected to help...
-
On January 15, 2015, the U.S. Treasury issued a 10-year inflation-indexed note with a coupon of 0.25%. On the date of issue, the consumer price index (CPI) was 236.854. On January 15, 2022, the CPI...
-
Which 3 statements are correct regarding reconciling a bank account in QuickBooks Online? To begin the reconcile process, you need to enter the statement ending date and ending balance from the...
-
In March 2022, Ginger Graham, age 46 and wife of Greg Graham, engaged in the transactions described below. Determine Gingers gift tax liability for 2022 if she and Greg elect gift splitting and Greg...
-
Mr B aged 52 years, has earned rupees 75,00,000 out of his business. His ex-wife gifted him a car worth rupees 8 lakh. He spent a total of rupees 20 lakh during a family trip. He won a lottery of 16...
-
Read the article by Grant Aldonas, Robert Lawrence, and Matthew Slaughter, available online at hks.harvard.edu/fs/rlawrence/fsf_adjustment_assistance_plan.pdf. Then answer the following questions. a...
-
Assuming that labor is mobile, is it true that wages always must be equal across the sectors in the specific-factors model?
-
Write each interval as an inequality involving x, and illustrate each inequality using the real number line. [4, )
-
1. You plan to retire in 35 years and would like to have $1,000,000 in investments. How much money would you have to invest today at a 7% annual interest rate compounded daily to reach your goal in...
-
Extravagance Ltd. has profit margin of 11%, total asset turnover of 1.25, equity multiplier of 1.75 and a payout ratio of 55%. What is the firm's sustainable growth rate? a) 24.06% b) 12.14% c)...
-
Consider the following bond portfolio: a ) What is the bond portfolio's duration? b ) If the bond portfolio duration is 6.95 years, calculate the capital loss on this portfolio when the yield...
-
If a $68,087, loan at 2% interest compounded monthly is paid off in one payment after 30 years, how much is the payment? Round your answer to the nearest cent.
-
Inc. which currently has a capital structure that is 40% debt and 60% equity has an asset beta of 1.55 what is the firm's equity beta? ignore taxes a) 2.583 b) .930 c)1.352 d) 3.875 e)4.079
-
How does the concept of buoyancy complicate the old question "Which weighs more, a pound of lead or a pound of feathers"?
-
What are the key elements of a system investigation report?
-
a. Using Figure 2-5, show that an increase in the relative price of wheat from its world relative price of 2/3 will raise Home's utility. b. Using Figure 2-6, show that an increase in the relative...
-
Suppose that the Home country is much larger than the Foreign country. For example, suppose we double the number of workers at Home from 25 to 50. Then Home is willing to export up to 100 bushels of...
-
Using the results from Problem 11, explain why the Ricardian model predicts that Mexico would gain more than the United States when the two countries signed the North American Free Trade Agreement,...
-
Assume I have a stack of integer elements called st. What is going to be printed after I run the following statements? st.push(2); st.push(5); st.pop(); st.push(1); st.peek(); st.push(12);...
-
Use the graphical method to construct the shear-force and bending-moment diagrams for the beam shown. Label all significant points on each diagram and identify the maximum moments along with their...
-
Moerdyk & Co. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the...
Study smarter with the SolutionInn App