Details of this Paper

EC 351 Questions Assignment - Using a basic Ricardian Model




Question;1) Using a basic Ricardian Model (One factor, two nations, two goods) Develop and explain. Each nations? PPF, Define each comparative advantage, The conditions of relative supply, relative demand (just make it up), and Factor Payments (both pre and post trade). (40 points)2) The Ricardian model (and the standard model) explain comparative advantage as the result of superior relative labor productivity. Using the cases of the United States and Canada list several industries in which each nation would be expected to have a comparative advantage. (Hint: Use OECD data due to Government shutdown.) (40 points)3) Give the explanations of observed patterns of trade according to the models we have covered in class. (I.e. why countries export this and import that.) (15 points)Ricardian model,Standard trade model, Heckscher Ohlin Model4) Give two examples of products that are traded on international markets for which there are dynamic increasing returns. In each of your examples, show how innovation and learning by doing are important to the dynamic increasing returns of the industry. (25 points)


Paper#55770 | Written in 18-Jul-2015

Price : $38