assignment1 - Economics 181 Assignment 1 Due Date Thursday...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics 181 Assignment 1 Due Date: Thursday, September 14 Beginning of Class 1. We are given the following labor input requirements: Cloth Wheat UK 2 hours 6 hours USA 3 hours 2 hours (a) What is the relative price of cloth in terms of wheat in the UK? In the USA? (b) Where will the free trade price settle post trade? Who will export which good? (c) If the post-trade relative price of cloth in terms of wheat is equal to 2/3, show what happens to consumption of cloth and wheat in the US and UK pre and post trade. Use this information to calculate the wage in the USA relative to the UK post-trade. (d) Show that unit labor costs post-trade are consistent with the pattern of trade.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2. We are given the following labor input requirements for Uruguay and Chile: Uruguay Chile Insulation 5 2.5 Grain 15 30 Beef 30 30 Video Tape 2 3 (a) What is the order of products from greatest to least comparative advantage for Uruguay relative to Chile?
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern