babygurlybaby

babygurlybaby

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California State University-Northridge

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English3Business1Marketing1Electrical Engineering1Nursing1Calculus6Economics22
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Home is endowed with 10,000 labor hours and 1000 units of capital stock, which Foreign is endowed with 2000 labor hours and 100 units of capital stock. Both countries produce computer and cloth. Computer is more capital intensive than shoes (that is, cloth is more labor intensive than computer).

1. Which is country is relatively abundant in capital? Which country is relatively abundant in labor? Why?

2. In what sense is computer said to be more capital intensive than cloth?

3. In what sense is cloth said to be more labor intensive than computer?

4. Based on the Hecksher-Ohlin theorem, what is the predicted pattern of trade between Home and Foreign? Why?

5. If Home opens up to international trade, how will the relative price of computer be compared to its autarky level? Why?

6. If Foreign opens up to international trade, how will the relative price of computer be compared to its autarky level?

7. If Home moves from autarky to free trade, how do you predict the change in the capital intensity in each industry of the home economy?

8. If Foreign moves from autarky to free trade, how do you predict the change in the capital intensity in each industry of the foreign economy?

9. If Homes move from autarky to free free trade, who will gain and who will lose in the home economy based on the Stolper-Samuelson theorem? Why?

10. If Foreign move from autarky to free trade, who will gain and who will lose in the foreign economy based on the Stolper-Samuelson theorem? Why?

11. If Home’s capital stock rises, then at an unchanged relative price of goods, which industry will grow and which industry will decline in the home economy based on The Rybczynski theorem? Use the PPF diagram to indicate this theorem?

12. Free trade may result in factor prices equalization (FPE) between Home and Foreign. Explain this possibility with the aid of diagrams. Also, explain why the FPE hypothesis failed empirically.

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The diagram describes the hypothetical demand and supply for canned tuna in Canada in 2022.   a. Suppose the price of a can of tuna is $ 4.00$4.00. What is the quantity​ demanded? What is the quantity​ supplied? At this​ price, is there a shortage or a​ surplus? By what​ amount?   If the price is $ 4.00$4.00​, the quantity demanded is enter your response here million cans and the quantity supplied is enter your response here million cans. There is a ▼   shortage surplus by enter your response here million cans. ​(Round your responses to the nearest​ integer.) Part 2 b. Suppose the price of a can of tuna is $ 2.00$2.00. What is the quantity​ demanded? What is the quantity​ supplied? At this​ price, is there a shortage or a​ surplus? By what​ amount?   If the price is $ 2.00$2.00​, the quantity demanded is enter your response here million cans and the quantity supplied is enter your response here million cans. There is a ▼   surplus shortage by enter your response here million cans. ​(Round your responses to the nearest​ integer.) Part 3 c. What is the equilibrium price and quantity in this​ market?   The equilibrium price is ​$enter your response here per​ can, and the equilibrium quantity is enter your response here million cans. ​(Round your responses to the nearest​ integer.)   ...   Question content area right Part 1 Tuna Market 01234567891011121314150.000.501.001.502.002.503.003.504.004.505.00Quantity (millions of cans)Price (dollars per can)SD
Answer: Step-by-step explanation: Let's solve this step by step: Part 1: - At ...

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