Q: In Home and Foreign, there are two factors each of production
In Home and Foreign, there are two factors each of production, land, and labor used to produce only one good. The land supply in each country and the technology of production are exactly the same. The...
See AnswerQ: Mexico and Brazil have very different trading patterns. While Mexico trades
Mexico and Brazil have very different trading patterns. While Mexico trades mainly with the United States, Brazil trades about equally with the United States and with the European Union. In addition,...
See AnswerQ: Using the numerical example in problem 5, assume now that Foreign
Using the numerical example in problem 5, assume now that Foreign limits immigration so that only two workers can move there from Home. Calculate how the movement of these two workers affects the inco...
See AnswerQ: Studies of the effects of immigration into the United States from Mexico
Studies of the effects of immigration into the United States from Mexico tend to find that the big winners are the immigrants themselves. Explain this result in terms of the example in problem 6. How...
See AnswerQ: Go back to the numerical example with no factor substitution that leads
Go back to the numerical example with no factor substitution that leads to the production possibility frontier in Figure 5-1. Data from Figure 5-1: a. What is the range for the relative price of cl...
See AnswerQ: In the United States, where land is cheap, the ratio
In the United States, where land is cheap, the ratio of land to labor used in cattle raising is higher than that of land used in wheat growing. But in more crowded countries, where land is expensive a...
See AnswerQ: The world’s poorest countries cannot find anything to export. There is
The world’s poorest countries cannot find anything to export. There is no resource that is abundant—certainly not capital or land, and in small poor nations not even labor is abundant.” Discuss.
See AnswerQ: The U.S. labor movement—which mostly represents blue
The U.S. labor movement—which mostly represents blue-collar workers rather than professionals and highly educated workers—has traditionally favored limits on imports from less-affluent countries. Is t...
See AnswerQ: Recently, computer programmers in developing countries such as India have begun
Recently, computer programmers in developing countries such as India have begun doing work formerly done in the United States. This shift has undoubtedly led to substantial pay cuts for some programme...
See AnswerQ: Explain why the Leontief paradox and the more recent Bowen, Leamer
Explain why the Leontief paradox and the more recent Bowen, Leamer, and Sveikauskas results reported in the text contradict the factor-proportions theory.
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