Problem Set 1 - Due Sept. 13, 2012
(Producer and consumer surplus; review)
The purpose of this problem set is to review concepts from Econ 301 and to illustrate how these concepts
can be used to answer real world policy questions.
Problem Set 2 Due October 2, 2012
(Ricardian Model, Chapter 2) Consider a Ricardian model of comparative advantage. There
are two countries, the U.S. and China. Each country can produce two goods, shirts (S) and food (F)
Problem Set 3 - Due November 8, 2012
1. (Simplified version of Heckscher-Ohlin model). Consider a country which can produce two goods:
manufactures (M) and food (F) using two inputs: labor (L) and capital (K). Production of
Problem Set 4 - Due November 30, 2012
NOTE: this problem set is optional.
I will use your best 3 scores on your 4 problem sets in calculating your grade
1. Consider a world of two countries (US, China) with the following de