Note: same information for questions 16-19. The following fi…

Note: same information for questions 16-19. The following figure shows the production possibilities frontiers of two countries, Home and Foreign (solid lines). They produce two goods, Oil and Cars. Also shown are two indifference curves for the Home country. When the two countries open up to free and costless trade with each other, the resulting price line for the Home country is also shown as the dashed line. HOME has comparative advantage in

Note: same information for questions 16-19. The following fi…

Note: same information for questions 16-19. The following figure shows the production possibilities frontiers of two countries, Home and Foreign (solid lines). They produce two goods, Oil and Cars. Also shown are two indifference curves for the Home country. When the two countries open up to free and costless trade with each other, the resulting price line for the Home country is also shown as the dashed line. When there is free and costless trade between the two countries, how many units of Oil will FOREIGN consume? Enter 0 if not enough information is provided. Only exact answer is accepted. Use a decimal point if needed.

Note: same information for questions 20-25, except where oth…

Note: same information for questions 20-25, except where otherwise noted. A small country is engaged in free international trade with a large country. There are two sectors (goods): sector (good) x and sector (good) y. There are three factors of production: labor, which is perfectly mobile across the two sectors; land, which is specific to good x; and capital, which is specific to good y. The solid lines of the following figure represent: Px MPLx for the small country as a function of Lx, measured from origin O; and Py MPLy as a function of Ly, measured from origin O*. The length of the base of the figure is L=2000, the total units of labor in the country. One unit of labor is one worker working for a year. The scale on the vertical axis is thousands of dollars. Note that each grid spacing on the horizontal represents 50 workers, and each grid spacing on the vertical axis represents 1 thousand dollars. NOTES:            – Ignore the dashed line until it is mentioned below. – Since this is a graphical question, some of the answers may be approximate! For all remaining questions in this group, suppose that labor can move freely from one sector to another. For the remainder of this group, suppose that the price of good y doubles, resulting in the dashed line, labeled P’y MPLy. After the price of good y doubles, approximately how much is the new wage in the country?

Note: same information for questions 20-25, except where oth…

Note: same information for questions 20-25, except where otherwise noted. A small country is engaged in free international trade with a large country. There are two sectors (goods): sector (good) x and sector (good) y. There are three factors of production: labor, which is perfectly mobile across the two sectors; land, which is specific to good x; and capital, which is specific to good y. The solid lines of the following figure represent: Px MPLx for the small country as a function of Lx, measured from origin O; and Py MPLy as a function of Ly, measured from origin O*. The length of the base of the figure is L=2000, the total units of labor in the country. One unit of labor is one worker working for a year. The scale on the vertical axis is thousands of dollars. Note that each grid spacing on the horizontal represents 50 workers, and each grid spacing on the vertical axis represents 1 thousand dollars. NOTES:            – Ignore the dashed line until it is mentioned below. – Since this is a graphical question, some of the answers may be approximate! For all remaining questions in this group, suppose that labor can move freely from one sector to another. For the remainder of this group, suppose that the price of good y doubles, resulting in the dashed line, labeled P’y MPLy. When the price of good y doubles, the impact on workers is ______. To explain this, we need to understand that ______ .

The United States trades much more with Ireland than is pred…

The United States trades much more with Ireland than is predicted by the size of their economies and the distance between the two countries (the gravity model). All of the following answers help in explaining this fact, except one answer. Which of the answers does NOT help in explaining why the United States trades more with Ireland than predicted by the gravity model?

Note: same information for questions 16-19. The following fi…

Note: same information for questions 16-19. The following figure shows the production possibilities frontiers of two countries, Home and Foreign (solid lines). They produce two goods, Oil and Cars. Also shown are two indifference curves for the Home country. When the two countries open up to free and costless trade with each other, the resulting price line for the Home country is also shown as the dashed line. The production point and the consumption point of the HOME country with free trade are:

Note: same information for questions 20-25, except where oth…

Note: same information for questions 20-25, except where otherwise noted. A small country is engaged in free international trade with a large country. There are two sectors (goods): sector (good) x and sector (good) y. There are three factors of production: labor, which is perfectly mobile across the two sectors; land, which is specific to good x; and capital, which is specific to good y. The solid lines of the following figure represent: Px MPLx for the small country as a function of Lx, measured from origin O; and Py MPLy as a function of Ly, measured from origin O*. The length of the base of the figure is L=2000, the total units of labor in the country. One unit of labor is one worker working for a year. The scale on the vertical axis is thousands of dollars. Note that each grid spacing on the horizontal represents 50 workers, and each grid spacing on the vertical axis represents 1 thousand dollars. NOTE:            – Ignore the dashed line until it is mentioned below. – Since this is a graphical question, some of the answers may be approximate! Suppose that initially labor cannot move from one sector to another, and that the y sector employs 1600 workers, therefore the x sector employs 400 workers. What is the approximate wage difference between the two sectors?