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1、WORD格式整理版Chapter31.Homehas1200unitsoflaboravailable.Itcanproducetwogoods,applesandbananas.Theunitlaborrequirementinappleproductionis3,whileinbananaproductionitis2.a.Graphouttheproductionpossibilitiesfrontier:b.Whatistheopportunitycostofapplesintermsofbananas?c.Intheabsenceoftra
2、de,whatwouldthepriceofapplesintermsofbananasbe?Intheabsenceoftrade,sincelaboristheonlyfactorofproductionandsupplydecisionsaredeterminedbytheattemptsofindividualstomaximizetheirearningsinacompetitiveeconomy,onlywhenwillbothgoodsbeproduced.So2.Homeisasdescribedinproblem1.Thereisn
3、owalsoanothercountry,Foreign,withalaborforceof800.Foreign’sunitlaborrequirementinappleproductionis5,whileinbananaproductionitis1.a.GraphForeign’sproductionpossibilitiesfrontier:b.Constructtheworldrelativesupplycurve.优质.参考.资料WORD格式整理版3.Nowsupposeworldrelativedemandtakesthefollow
4、ingform:Demandforapples/demandforbananas=priceofbananas/priceofapples.a.Graphtherelativedemandcurvealongwiththerelativesupplycurve:∵Whenthemarketachievesitsequilibrium,wehave∴RDisahyperbolab.Whatistheequilibriumrelativepriceofapples?Theequilibriumrelativepriceofapplesisdetermin
5、edbytheintersectionoftheRDandRScurves.RD:RS:∴优质.参考.资料WORD格式整理版∴c.Describethepatternoftrade.∵∴Inthistwo-countryworld,Homewillspecializeintheappleproduction,exportapplesandimportbananas.Foreignwillspecializeinthebananaproduction,exportbananasandimportapples.d.ShowthatbothHomeandF
6、oreigngainfromtrade.InternationaltradeallowsHomeandForeigntoconsumeanywherewithinthecoloredlines,whichlieoutsidethecountries’productionpossibilityfrontiers.Andtheindirectmethod,specializinginproducingonlyoneproductionthentradewithothercountry,isamoreefficientmethodthandirectpro
7、duction.Intheabsenceoftrade,Homecouldgainthreebananasbyforegoingtwoapples,andForeigncouldgainbyoneforegoingfivebananas.Tradeallowseachcountrytotradetwobananasforoneapple.HomecouldthengainfourbananasbyforegoingtwoappleswhileForeigncouldgainoneapplebyforegoingonlytwobananas.Sobot
8、hHomeandForeigngainfromtrade.4.Supposethatinsteadof120