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IT Chapter 3 P48 1.(a)The production poibility curve is linear, with the intercept on the apple axis equal to 400(1200/3)and the intercept on the banana axis equal to 600(1200/2).2.(a)The production poibility curve is linear, with the intercept on the apple axis equal to 160(800/5)and the intercept on the banana axis equal to 800(800/1).2.(b)The world relative supply curve is constructed by determining the supply of apples relative to the supply of bananas at each relative price.The lowest relative price at which apples are harvested is 3 apples per 2 bananas.The relative supply curve is flat at this price.Answer to exercise
2.(b)The maximum number of apples supplied at the price of 3/2 is 400 supplied by Home while, at this price, Foreign harvests 800 bananas and no apples, giving a maximum relative supply at this price of 1/2.This relative supply holds for any price between 3/2 and 5.At the price of 5, both countries would harvest apples.The relative supply curve is again flat at 5.Thus, the relative supply curve is step shaped, flat at the price 3/2 from the relative supply of 0 to 1/2, vertical at the relative quantity 1/2 rising from 3/2 to 5, and then flat again from 1/2 to infinity.3.(a)The relative demand curve includes the points(1/5, 5),(1/2, 2),(1, 1),(2, 1/2).(b)The equilibrium relative price of apples is found at the intersection of the relative demand and relative supply curves.This is the point(1/2, 2), where the relative demand curve intersects the vertical section of the relative supply curve.Thus the equilibrium relative price is 2.Answer to exercise(c)Home produces only apples, Foreign produces only bananas, and each country trades some of its product for the product of the other country.(d)In the absence of trade, Home could gain three bananas by foregoing two apples, and Foreign could gain by one apple foregoing five bananas.Trade allows each country to trade two bananas for one apple.Home could then gain four bananas by foregoing two apples while Foreign could gain one apple by foregoing only two bananas.Each country is better off with trade.4.The increase in the number of workers at Home shifts out the relative supply schedule such that the corner points are at(1, 3/2)and(1, 5)instead of(1/2, 3/2)and(1/2, 5).The intersection of the relative demand and relative supply curves is now in the lower horizontal section, at the point(2/3, 3/2).In this case, Foreign still gains from trade but the opportunity cost of bananas in terms of apples for Home is the same whether or not there is trade, so Home neither gains nor loses from trade.5.This answer is identical to that in 3.The amount of “effective labor” has not changed since the doubling of the labor force is accompanied by a halving of the productivity of labor.6Qa+4Qb=2400 Gains from trade: price increase
Pa/Pb 1.5
o 0.5
Pa/Pb
1.5
o 2/3(Qa Qb)/(Q*a
*b6.This statement is just an example of the pauper labor argument discued in the chapter.The point is that relative wage rates do not come out of thin air;they are determined by comparative productivity and the relative demand for goods.The box in the chapter provides data which shows the strong connection between wages and productivity.China’s low wage presumably reflects the fact that China is le productive than the United States in most industries.As the test example illustrated, a highly productive country that trades with a le productive, low-wage country will raise, not lower, its standard of living.7.The problem with this argument is that it does not use all the information needed for determining comparative advantage in production: this calculation involves the four unit labor requirements(for both the industry and service sectors, not just the two for the service sector).It is not enough to compare only service’s unit labor requirements.If als
8.While Japanese workers may earn the equivalent wages of U.S.workers, the purchasing power of their income is one-third le.This implies that although w = w*(more or le), p
9.Gains from trade still exist in the presence of nontraded goods.The gains from trade decline as the share of nontraded goods increases.In other words, the higher the portion of goods which do not enter international marketplace, the lower the potential gains from trade.If transport costs were high enough so that no goods were traded then, obviously, there would be no gains from trade.10.The world relative supply curve in this case consists of a step function, with as many “steps”(horizontal portions)as there are countries with different unit labor requirement ratios.Any countries to the left of the intersection of the relative demand and relative supply curves export the good in which they have a comparative advantage relative to any country to the right of the intersection.If the intersection occurs in a horizontal portion then the country with that price ratio produces both goods.
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第八章1.什么是非关税壁垒？其日趋增强的主要原因是什么？ 非关税壁垒是指一国政府除关税以外的一切限制进口的措施。 它是与关税壁垒相对而言的。 原因：1.20世纪70年代两次石油......
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