Econ 178 HW
经济课业作业代写 Q1.Given the demand and supply for an importing country, please answer the questions below: Where P is the world price,
Given the demand and supply for an importing country, please answer the questions below:
Where P is the world price, P1 is the world price after tariffs ( tax on imports), and P2 is the domestic equilibrium price.
a. Find the total surplus (welfare) before trade?
b. Find the total surplus after free trade? Please show the gains from trade?
c. Show the welfare cost of the tariffs?
Suppose that Anna is indifferent between 2 cellphones and 4 computers and George is indifferent between 1 computer and 2 cellphones.
Anna: 2 cellphones = 4 computers
George: 2 cellphones = 1 computers
i. Find two examples of a trade between Anna and George that makes both better off?
ii. Should Anna give computers or cellphones to George?
iii. If George gives Anna 6 cellphones and receives 2 computers. If this a fair trade? Explain your answer.
Suppose that in a year an American worker can produce 100 shirts or 20 computers, while a Chinese worker can produce 100 shirts or 10 computers.
(a) In America, what is the opportunity cost of producing an additional shirt (measured in terms of foregone computers)? In China, what is the opportunity cost of producing an additional shirt (measured again in terms of foregone computers)?
(b) Suppose that America and China each have 100 workers. If each country devotes half its workers to each industry, how many shirts and computers does each country produce? What is world output of shirts and computers?
(C) Who has absolute advantage in computers? In shirts?
( D) Suppose now that each country specializes by devoting all of its workers to the industry in which it has a comparative advantage. In this case, what is world output of shirts and computers?
Malaysia has 200 units of labor, while there are 400 units of labor in Indonesia. When they produce, the countries have the following unit labor requirements.
Malaysia 10 10
Indonesia 20 40
a. What is the relative price of rugs to cameras in Indonesia if there is no trade?
b. For which product does Malaysia have comparative advantage?
c. If the price of cameras is $20 per unit and the price of rugs is $40 in Malaysia. Will the Malaysian workers work in rugs or cameras production?
A country produces two products: X and Y. If the marginal product of labor MPL in X production is 2 units and in Y production is 6 units. Please answer the following questions:
a. If each unit of X is sold at $15, what would be the price of Y per unit so workers don’t move from Y to X or vice versa?
b. Find the opportunity cost of X? The opportunity cost of Y?
c. If the price of X is $9 per unit and the price of Y is $6 per unit. Furthermore, assume that the marginal product of Y is 6 units, what would be the MPLx so that workers prefer to work in X production?
A country produces two goods: Food and cloth. Given the information below, please answers questions a to c:
– 8 machines (units of capital) are required to produce 2 units of food.
– 2 Workers (units of labor) are required to produce 1unit food.
– 4 machines (units of capital) are required to produce 2 units of cloth.
– 1 Workers (units of labor) are required to produce 1 unit cloth.
– Total amount of labor: 800 workers.
– Total amount of capital: 1000 machines.
a. Write down the labor and capital constraints formulas?
b. Draw both the labor and capital constraints? Show the PPF curve with no input substitution?
c. Find the opportunity cost of food and cloth in both for both labor and capital constraints?