please how all work and calculations. Question 1 (25 points total, 5 points each part) Consider the following information about the nation Suburbia

Labor used to produce good Y

50 days

25 days

a) Is Suburbia a labor- or a capital-abundant country? Explain your answer.

b) What is the price of X in terms of Y with free trade?

c) How many units of what product are exported? How many units of what product are imported?

d) Has the marginal product of labor in good X production increased or decreased as a result of trade? Explain your answer.

e) Has the marginal product of capital in good Y production increased or decreased as a result of trade?  Explain your answer.

Question 2 (25 points total, 5 points each part)

Country H Before and After Trade Equilibria

Assume that shoes are a labor-intensive good, and computers are capital-intensive. When H trades, it is with country F. Use the graph above to answer the following.

a)     What was the pre-trade consumption/production of shoes and computers?

b)     Describe the trade flows between Countries H and F.

c)     What is the price ratio (Pc/Ps) at which free trade occurs?

d)     Compared to Country H, Country F is relatively _______ abundant and has a comparative advantage in producing _____.

e)     What happens to wages in Country H after trade? Briefly justify your answer.


(5 points) Suppose that Home has 20% of the world’s capital, 10% of the world’s skilled labor, 30% of the world’s unskilled labor, and produces 20% of the world’s GDP. What does this information suggest about Home’s resource endowments? Explain your answer.


(5 points) According to the Stolper-Samuelson theorem, would you expect U.S. skilled workers to benefit from free trade worldwide? Briefly explain your answer.


(5 points) According to the Stolper-Samuelson theorem, would you expect all workers across the globe to favor limiting trade? Why or why not?


(5 points) If Malaysia has a comparative advantage in producing low-skilled, labor-intensive goods, what should happen to Malaysian low-skilled workers’ wages as trade barriers against Malaysian imports fall across the world? What should happen to returns to capital in Malaysia? Briefly explain why using what you’ve learned in lecture.

  1. (30 points) Changing K/L ratios.

a)     (5 points) Draw an Edgeworth Box for country H where the production of X and Y utilize Capital (K) and Labor (L). Let X be the capital-intensive good, and Y be the labor intensive good. Sketch in an appropriate looking efficiency locus curve and identify two points along the curve, labeled A1 and A2, with A1 being the one closer to the origin for good X. You need not include isosquant curves.

b)     (5) Draw in lines representing K/L ratios for each industry at the points A1 and A2. This will be four lines total, label them kx,1, kx,2, ky,1, ky,2.

c)     (5) Suppose the economy starts at point A1. It then shifts production to A2. What change in world conditions could prompt such a change?

d)     (5) How have the K/L ratios changed in each industry?

e)     (10) Both industries X and Y have seen their K/L ratios change in the same direction. Yet, the overall K/L ratio is unchanged in the economy. Explain how this is possible.

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10