Please explain the roles of Production Possibility Curve in any economic system applied by any countries? And Do you agree that the economic growth shifts the PPC outward and makes it possible to have more of all commodities. It means economy ofa country in growing up faster? If Yes or Not, please provide your reasons as widely as possible? PLEASE GIVE DETAIL EXPLANATION
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Please explain the roles of Production Possibility Curve in any economic system applied by any countries? And Do you agree that the
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- When does a country have a comparative advantage over producing a good? Explainwith examples.How could a country shift its production possibilities curve to the right through improved technology?Imagine the following case study where two different countries: Albania and Belize have remained self-sufficient and mostly produce two of the following products: corn and beets. Our hopes are that we will be able to improve trade liberalization and encourage each one to work together in order to improve the number of resources and goods each one provides to their population. Here are their production levels for each product per worker/month (assume each country has a workforce for 15 workers): Bushels Corn (Y-аxis) Вets (X-аxis) Albania 40 20 Belize 20 4 Calculate and graph the Production possibilities frontiers for both countries. b) Assume that both countries currently prefer equal amounts of corn and beet for their production & consumption levels within their country, clearly label this point and call it point B: production/consumption before trade. c) Calculate and state the number of workers that would be required in order to produce points B for both countries. a) d) Complete…
- Two workers are currently trying to produce both pens and pencils for a company named We R' Write. Worker A can produce 100 pencils per day or 50 pens. Worker B can produce 100 pencils per day or 20 pens. If the workers continue to try and produce both, how many pencils will each worker produce, and how many pens will each worker produce? What is the opportunity cost of producing pencils and for producing pens for each worker? After specialization, how many pencils will be made in total by both workers? After specialization, how many pens will be made in total by both workers? What is the difference in the total number of pencils made by both workers after specialization? What is the difference in the total number of pens made by both workers after specialization?Question 1 a: Use a production possibilities frontier to describe the idea of trade-off. b: Accumulation of capital and change in technology bring economic growth, which means that the PPF keeps shifting outward: Production that was unattainable yesterday becomes attainable today; production that is unattainable today will become attainable tomorrow. Why doesn’t this process of economic growth mean that scarcity is being defeated and will one day be gone? (Word count: 150 words max.)Suppose two countries produce the same twogoods and have identical production possibilitiesfrontiers. Do you expect these countries to trade?Explain why or why not.
- Who are the winners and losers of the free trade between two countries? Can free trade between the two countries make consumers of both countries better off? In answering this question, consider discussing: How are you and your household connected to the global economy? Which imported goods and services do you buy? Are your consumption patterns based on comparative advantage? How do US trade patterns, based on comparative advantage, contribute to income inequality in the US, according to the Heckscher-Ohlin model? How has trade affected international income inequality? What were some recent tariffs? Who really pays the cost of tariffs?Use the two-country Ricardian Model with free trade to graphically analyze the effects of the following changes (one at a time). Assume that the Home country has a comparative advantage in Food (the other good being Cloth), and that in the initial equilibrium, both countries specialize completely. You may assume, if it is helpful, that preferences are identical and homothetic in the two countries. a. Draw diagrams that illustrate the PPF, prices, and indifference curves in the Home and in the Foreign market in this setting (2 figures), as well as the trade equilibrium (supply vs demand). b. Illustrate the effect of an increase in the Foreign labor force in the three diagrams. Explain how relative prices change. c. Illustrate the effect of an increase, by the same percentage in both industries, in the Home country's productivity in producing both Food and Cloth.What ways that a country could shift its production possibilities curve to the right through improved technology.
- In the Heckscher-Ohlin model, suppose the two factors of production are: high-skilled labor (H) and regular labor (L). The two sectors are manufacturing and business services. Manufacturing uses regular labor more intensively, and business services uses high-skilled labor more intensively. The two countries are the U.S. and China, and the U.S. has a comparative advantage in business services. a. Illustrate the effect of opening up to trade on the U.S. with the PPF and indifference curve diagram. Make sure you clearly label everything. What happens to the relative price of business services in the U.S.? Show clearly the gains from trade. b. What happens to the relative wage of high-skilled labor? Does inequality (the skill premium) increase? Show all work and explain. 2. Evidence for or against Heckscher-Ohlin model Leontieff Paradox i. Briefly describe the paradoxii.We discussed several explanations for the paradoxical result in class. Briefly describe two explanations. Inequality…The above tables represent the production possibilities frontiers (PPFs) for two different countries (Country 1 and Country 2) for two different goods (Good X and Good Y.) Points A, B, C, D, E, F represent various points along the PPF for Country 1. Points L, M, N, O, P represent various points along the PPF for Country 2. Assume that in each country the total number of hours worked is the same. Assume that before specialization Country 1 produces at point B and Country 2 produces at point M. Now, assume that each country completely specializes in the good in which it has comparative advantage and that 1000 units of Good Y are traded for 1000 units of Good X. Due to specialization and trade, Country 2 will be able to consume an extra ________ units of Good X and _______ units of Good Y compared to what it was able to consume when it was producing at point M.The above tables represent the production possibilities frontiers (PPFs) for two different countries (Country 1 and Country 2) for two different goods (Good X and Good Y.) Points A, B, C, D, E, F represent various points along the PPF for Country 1. Points L, M, N, O, P represent various points along the PPF for Country 2. Assume that in each country the total number of hours worked is the same. Assume that before specialization Country 1 produces at point B and Country 2 produces at point M. Assume that each country completely specializes in the good in which it has comparative advantage. The overall gain in production that would occur from each country specializing in the good where it has comparative advantage is __________ units of Good X and __________ units of Good Y.