The table below shows the production of beef (in pounds) and…

The table below shows the production of beef (in pounds) and autos of one worker in Argentina and in Mexico: One worker can produce Beef (in pounds) Autos Argentina 100 10 Mexico 40 30   Suppose that before trade (or without trade) each country has 50 workers and they each allocate 25 workers for the production of beef and 25 workers for the production of autos. Find the maximum production and consumption of both goods for each country. If the countries decide to engage in trade (with trade), they will specialize in the production of the good in which they have comparative advantage. In which good should Argentina specialize? How about Mexico? Justify! (To answer this question you must calculate the opportunity cost of each good for both countries and then find the country’s comparative advantage). What is the with trade production of the countries? If the countries decide to engage in trade the Terms-of-Trade will be set at 1,500 pounds of beef for 300 autos. With this information complete the tables below (show your work!): Argentina’s gains from trade ARG Produce Consume Gains from Trade Beef Autos   Mexico’s gains from trade MEX Produce Consume Gains from Trade Beef Autos Note: this is a file upload question. Write down your solution in a piece of paper, take a picture and upload your file. Don’t forget to show your work! Do not write only the final answer (number), show how you got that number. Words: 4 Characters: 26

The table below shows the share of income going to each quin…

The table below shows the share of income going to each quintile of the income distribution for Neverland in 1980 and 1990. Complete the table below finding the the cumulative share of income for 1980 and 1990 and answer the following:  Cumulative share of income for 1980 and 1990 Quintiles Share of income in 1980 Cumulative share of income in 1980 Share of income in 1990 Cumulative share of income in 1990 1st 7% 6.6.% 2nd 11.5% 11.5% 3rd 17% 16.3% 4th 24.8% 22.7% 5th 39.7% 42.9% Sketch the Perfect Equality line and the Lorenz curve for 1980 and for 1990. Don’t forget to label your graph and your curves! According to the Lorenz curves that you draw in (a), which year had worse income inequality, 1980 or 1990? Justify your answer!

Based on your knowledge from chapter 17,  complete the follo…

Based on your knowledge from chapter 17,  complete the following sentence correctly: You learned that buying stocks or bonds issued by a single company is always somewhat [option1]. An individual firm may find itself buffeted by unfavorable supply and demand conditions or hurt by unlucky or unwise managerial decisions. Thus, a standard recommendation from financial investors is [option2]. Two investment vehicles offered by financial institutions and banks as a convenient way to diversify their investments are [option3], which is a fund that buys a range of stocks or bonds from different companies, and [option4], which is a form of mutual fund that seeks only to mimic the overall performance of the market.

A very small town has only 15 households and they have the f…

A very small town has only 15 households and they have the following annual incomes: $52,000, $22,000, $92,000, $8,000, $118,000, $62,000, $38,000, $14,000, $132,000, $46,000, $26,000, $96,000, $54,000, $110,000, $80,000. Based on this information, answer the following: Calculate the share of total income received by each quintile of this income distribution. Show your work! Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2011? Compared to the U.S. does this city have higher or lower income inequality? (In 2011, the bottom quintile of the income distribution received 3.2% of income and the top quintile, 51.14%) Note: This is a file upload question. Work your answer in an excel sheet and upload your file, or simply work the answer in a piece of paper, take a picture and upload your file. 

The table below shows the quantity demanded and supplied in…

The table below shows the quantity demanded and supplied in the labor market for nurses in the town of Neverland, where all nurses belong to a union. Supply and demand schedule for Neverland’s nurse labor market Wages per Hour Quantity Demanded of Workers Quantity Supplied of Workers  $20 12,000 6,000 $25 10,000 7,000 $30 8,000 8,000 $35 6,000 9,000 $40 4,000 10,000 $45 2,000 11,000 Based on the table above, answer the following: What would the equilibrium wage and equilibrium quantity of workers be in this market if no union existed? Justify your answer! Assume that the union has enough negotiating power to raise the wage to $10 per hour higher than it would otherwise be. Is there now excess demand or excess supply of workers? Justify your answer!