Question;USA;UK;Clothes;3.6;6;Food;7;2.4;USA;72 workers;Brazil;144 workers;(a);What;would be the autarky relative price of clothes in each country? (Assuming that;in autarky conditions both products will be produced in both countries);(b);Which;good, if any, does USA have a comparative advantage in?;(c);Which;good, if any, does USA have an absolute advantage in?;(d);Graph;the production possibilities frontier of USA, with clothes on the X axis;(e);Graph;the world supply of Clothes;(f);Suppose;the level of demand for Clothes leads to both countries producing Clothes;(i);Draw;a demand curve on the supply curve that would result in this outcome;(ii);What;is the relative price of a piece of clothing?;(iii);What;is the relative wage of USA workers vs. UK workers;(iv);What;is the real wage in USA in terms of clothes?;(v);What;is the real wage in USA in terms of food?;(vi);Which;country has gained from trade?
Paper#55375 | Written in 18-Jul-2015Price : $27