Question: nshot (133).png Fullscreen QUESTION 6 In the specific factor model with labour as a mobile factor, introducing trade O increases the welfare of all the

nshot (133).png Fullscreen QUESTION 6 In the specific factor model with labour as a mobile factor, introducing trade O increases the welfare of all the owners of specific factors in Home. O induces a Pareto improvement for the economy that exports more. O lowers the welfare of workers O increases output and consumption in the world. QUESTION 7 In the specific factor model with two goods 1 and 2 and labour as the mobile factor, in the autarky equilibrium it must hold that O MPL1=(P2/P1)MPL2 for marginal labour productivityes MPL1 and MPL2 O MPL1=MPL2 for marginal labour productivityes MPL1 and MPL2 O the wage w is given by w=MPL1/MPL2 O the wage w is given by w=P1/P2 O the wage w is given by w=(P1 MPL1)/(P2MPL2)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

1 Specific Factor Model [60 points] Two countries, Home and Foreign, produce two goods, Cotton and Desks, using three factors of produc- tion, Land (T), Machines (M) and Labor (L). Land owners are...

Do it correctly Problem set 3 - The Specific Factors Model Exercise 1 Consider the following table with outputs of x and y: x 4 3 2 1 |0 0 7 12 15 16 a) Plot the production possibilities frontier...

PART A: MULTIPLE CHOICE QUESTIONS Each Question is worth 2 marks (40 Marks Total) Use the following Scenario to answer Questions 1-2: Consider two countries, Australia and New Zealand, in a H-O...

As the new auditor, you are to develop a comprehensive audit plan. The auditing standards describe the components of what is to be included in an audit plan. You are to describe accounting and...

echr Section C Question 5 Production Function Estimation. Suppose that you have a random cross section of firm- level data, with information on output, labor and capital. In logs, (uni, hi, k : i =...

Return Predictability along the Supply Chain F.AJ inancial Analysts Journal Volume 66 . Number 3 @2010 CFA Institute these two studies were based on the idea that the 2007, the last month for which...

(Developing an Effective Business Model) in the book of(Entrepreneurship: Successfully Launching New Ventures, 6e ) then answer the two questions: 1- What is the purpose of business model? 2- Briefly...

Reading .1 International Assignments 2.1.1 Definition and Classification of International Assignments International work experience is one of the major requirements for promotion to higher-level...

The exponents on the utility function are both supposed to be 1/2, not 1/2 and 2/2 Problem Set 3 1 Specic Factor Model [60 points] Two countries, Home and Foreign, produce two goods, Cotton and...

A Supermarket Megamerger Will Redefine What You Buy at the Grocery Store Kroger and Albertsons want to merge in a $20 billion deal. If antitrust regulators approve, the definition of a grocery store...

Answer the following: a. Complete the following table and use it to find this monopolists short-run profit-maximizing level of output. How much profit will this firm earn? b. Redo the table to show...

Agao Chemical Company manufactures three chemicals (NY29, TX38, and CA55) from a joint process. The three chemicals are in industrial grade form at the split-off point. They can either be sold at...

Which two pieces of information do you need to calculate the profitability index? IRR and initial investment PV of future cash flow and initial investment PV of future cash flow and IRR Cash flow and...

The two blocks in Fig. 4.39 are connected by a heavy uniform rope with a mass of 4.00 kg. An upward force of 200 N is applied as shown. (a) Draw three free-body diagrams, one for the 6.00-kg block,...

An oil tanker's engines have broken down, and the wind is blowing the tanker straight toward a reef at a constant speed of 1.5 m/s (Fig. 4.37). When the tanker is 500 m from the reef, the wind dies...

An athlete throws a ball of mass m directly upward, and it feels no appreciable air resistance. Draw a free-body diagram of this ball while it is free of the athlete's hand and (a) moving upward; (b)...

The following note related to stockholders equity was reported in Wiebold, Inc.s annual report. On February 1, the Board of Directors declared a 3-for-2 stock split, distributed on February 22 to...

A transmission tower is held by three guy wires attached to a pin at A and anchored by bolts at B, C, and D. Knowing that the tower exerts on the pin at A an upward vertical force of 8 kN, determine...

Reject order O Items not in stock Order rejeded Check stock availability Purchase order received Itersin stock Confirm Emit invoice Order Ship goods Archive order O Order fulfilled Which part of the...

9. What is meant by the statement, the context is only relevant to us if we understand what it is trying to say?

7. What does it mean when we say that the words we use to denote a situation set limits on the solutions we can create at a later point?

8. Give examples from your own everyday life that the reference point you use has significance for the actions you take.