HW_09 - Economics 11, Winter 2010; HW Assignment #9 Due...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Due 3:15PM Thursday March 11 In class we discussed a setting with two countries and explored what happens when there is trade. An objection to our analysis is that workers in Country A just move from one industry to another – but that assumes all workers are equally skilled. What happens when we change that assumption? Country A is exactly as in class except that there is skilled labor and there is unskilled labor. Formally four goods: C,F,`,L (chips, food, unskilled labor, skilled labor) N 1 unskilled workers e = (0 , 0 , 1 , 0) , u ( C,F,` ) = C 1 F 6 ` 3 N 2 skilled workers e = (0 , 0 , 0 , 1) , u ( C,F,L ) = C 1 F 6 L 3 (Each kind of consumer consumes only their own labor.) two industries C = L , F = 2( ` + L ) (Chip production uses only skilled labor, Food production uses either skilled labor or unskilled labor.) Country B is exactly as in class. Formally three goods: C,F,L (chips, food, labor) M workers e = (0 , 0 , 1)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

HW_09 - Economics 11, Winter 2010; HW Assignment #9 Due...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online