 # Consider diagram 2 suppose that m200 what is the

• Test Prep
• 11
• 67% (3) 2 out of 3 people found this document helpful

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 4 - 6 out of 11 pages.

Consider Diagram 2. Suppose that M=\$200. What is the equation of the old price line? What is the equationof the new price line?(Diagram from Lecture 2)Consider this diagram from Lecture 2.At point Y, the marginal cost of S in terms of T is (higher/lower) than the slope of the price line and the quantity oftextiles produced is (higher/lower) than the quantity of textiles consumed in AutarkyConsider this diagram from Lecture 2.Any point on CIC2cannot be an Autarky Equilibrium. Why?Consider this diagram from Lecture 2.At point U, the marginal cost of S in terms of T is (higher/lower) than the slope of the price line and the quantity oftextiles produced is (higher/lower) than the quantity of textiles consumed in AutarkyConsider this diagram from Lecture 2.At point U, the marginal cost of S in terms of T is (higher/lower) than the slope of the price line and the quantity ofsoybeans produced is (higher/lower) than the quantity of soybeans consumed in AutarkyConsider this diagram from Lecture 2.Point U is preferred by the consumers to Point Y. True or False?If in a given year an Economy produces 200 units of textiles and 300 units of Soybeans, and the price of textiles is\$5 and the price of Soybeans is \$2, Nominal GDP is equal to ________,while Real GDP is equal to ______________What is an indifference curve?
According to the picture above, what is PS/PT?According to the picture above, what is PT/PS?According to the picture above, if PT=\$5, what is M?According to the picture above, if PS=\$5, what is M?Week 3Country ACountry BBananas15Apples42Numbers denote hours to produce 1 unit1)Consider the table above. What is the per unit gain in the world for Apples if Country A and Bspecialize according to their absolute advantage?2)Consider the table above. What is the per unit gain in the world for Bananas if Country A and Bspecialize according to their absolute advantage?3)Consider the table above. Who has the comparative advantage at producing apples?4)Consider the table above. Who has the absolute advantage at producing bananas?5)Consider the table above. What is the per unit gain for Bananas if Country A and B specializeaccording to comparative advantage?

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 11 pages?

Course Hero member to access this document

Term
Fall
Professor
Filippo Rebessi
• • • 