Ricardian Study guides, Class notes & Summaries

Assume that labor is the only factor of production and that wages in the United States equal $20 per hour while wages in Japan are $10 per hour. Production costs would be lower in the United States as compared to Japan if A. U.S. labor productivity equaled 40 units per hour and Japan's 15 units per hour. B. U.S. productivity equaled 30 units per hour whereas Japan's was 20. C. U.S. labor productivity equaled 20 and Japan's 30. D. U.S. labor productivity equaled 15 and Japan's 25 units...

Macro Sec B Questions and Answers Latest updated Discuss 2 macroeconomic policies, apart from protectionism, that a gov could use to reduce the negative effects of globalization (12) supply side policy (improve education, infrastructure) boost productivity boost GDP, enable firms to compete with foreign companies EV: education has a time lag Fiscal policy (inc gov spending, decrease prices) - increase peoples disposable incomes, reduces downsides mentioned in the text EV: depends on con...

This comprehensive and detailed note for Eco 132 focuses on; Borrower Versus Lender. The effects of government intervention (budget constraint). Ricardian equivalence theorem. U'll need it!!

International trade is logically associated with which assumption? A. Resources are less mobile internationally than domestically. B. Resources are more mobile internationally than are goods. C. Imports should exceed exports. D. Exports should exceed imports. E. None of the above. Answer: A 21. Arguments for free trade are sometimes disregarded by the political process because A. economists tend to favor highly protected domestic markets. B. economists have a universally accepted decis...

Adam Smith - Answer-1723 to 1790; Scottish; The founder of ECONOMICS as we know it. Born in Kirkcaldy, Fife, Adam Smith (1723-90) was educated at Glasgow and Oxford, and in 1751 became professor of logic at Glasgow University. Eight years later he made his name by publishing the THEORY OF MORAL SENTIMENTS. His 1776 book, An Inquiry into the Nature and Causes of the Wealth of Nations, is the bible of CLASSICAL ECONOMICS. He emphasized the role of specialization (the DIVISION OF LABOUR), TECHNICAL...

Study Outline for Econ S10b Midterm Exam Harvard University, Summer School Note: The assigned readings are potential sources for exam questions. I will NOT ask narrow factual questions about these readings, but you should be able to relate their main arguments to the material we have discussed in class. Note: The following outline does NOT cover everything we have studied in the class. All concepts and applications that we have discussed in class are possible exam topics. Good items to st...

NR 326 Final Exam Pollution (EconDef) when the residual assimilation services of the environment are free and unpriced Pollution (Envm Def) - waste assimilating capacity of the environment exceeded -pollution will not be reduced voluntary; requires coercion or and incentive for polluter to abate Types of Pollution Point Source: a single, identifiable, localized source of air, water, thermal, noise or light pollution (can be modeled as a point) Non-point: pollution that cannot be traced...

International Economics: Theory and Policy Sixth Edition Krugman and Obstfeld Test Bank | Complete All Chapters. Introduction 1 Chapter 2 Labor Productivity and Comparative Advantage: The Ricardian Model 14 Chapter 3 Specific Factors and Income Distribution 28 Chapter 4 Resources and Trade: The Heckscher-Ohlin Model 41 Chapter 5 The Standard Trade Model 56 Chapter 6 Economies of Scale, imperfect Competition, and International Trade 70 Chapter 7 International Factor Movements 82 Chapter 8 ...

Assume the U.S. currently grows 2.3 million tons of fresh winter fruit and that the resources absorbed in the production of this fruit could have produced 300,000 laptop computers. Therefore, the opportunity cost of those 2.3 million tons of fruit is ??? computers. Suppose that South America could have instead produced those 2.3 million tons of fruit at an opportunity cost of 150,000 laptops. Because of the difference in opportunity costs between the two regions, it can be shown that trade...

Contents 1. Introduction ..................................................................................................................................... 14 1.1. What Is International Economics About?............................................................................. 14 1.1.1. The Gains from Trade...................................................................................................... 15 1.1.2. The Pattern of Trade.....................................................