复旦国际贸易英文课件Answers-to-Problem-Set-1

ProblemSet11.RefertothefollowingtableandassumethatthetotallaborsupplyinTaiwanis4andthetotallaborsupplyinVietnamis8.a.Whatistheopportunitycostof1unitoftelephoneintermsofradiosinTaiwan?InVietnam?Answer:b.Determinewhethereachofthefollowingstatementsistrueorfalse.Provideabriefexplanationofwhyitistrueorfalse.i.Taiwanhasanabsoluteadvantageintheproductionofbothtelephonesandradios.Answer:TRUE:TaiwancanproducemoreofbothgoodsperhourthanVietnam.ii.Vietnamhasacomparativeadvantageintheproductionoftelephones.Answer:TRUE:VietnamhasaloweropportunitycostofproducingtelephonesrelativetoTaiwan.iii.OnepossibleproductioncombinationforVietnamis40unitsoftelephoneand80unitsofradioperhour.Answer:FALSE:Withalaborsupplyof8,itisnotpossibleforVietnamtoproduce40unitsoftelephoneAND80unitsofradioinanhour.Instead,twopossibleproductioncombinationsinclude40unitsoftelephoneperhourOR80unitsofradioperhour.c.Ifthetwocountriesengageininternationaltrade,whatwillTaiwanproduceandhowmany?Answer:BecauseVietnamhastheloweropportunitycostintheproductionoftelephonesandhencecomparativeadvantageinproducingthisgood,Taiwanhasacomparativeadvantageintheproductionofradios.Thus,Taiwanwillspecializeintheproductionofradios.Taiwanwillproduce50×4=200radiosperhour.d.WhatistherealwageinTaiwanintermsofradio?WhatistherealwageinVietnamintermsoftelephone?Answer:TherealwageinTaiwanintermsofradiois50unitsofradio.TherealwageinVietnamintermsoftelephoneis5unitsoftelephone.e.WillTaiwanandVietnamtradeiftheinternationalrelativepriceoftelephoneis3?Brieflyexplainwhyorwhynot.Answer:Becausetheno-tradepricesarePT/PR=5inTaiwanandPT/PR=2inVietnam,twocountrieswillengageintradeiftheinternationalrelativepriceoftelephoneis3.Inparticular,Vietnamwillexporttelephonesbecausetheinternationalrelativepriceoftelephoneishigherthanitsno-tradeequilibriumprice.Bycontrast,Taiwanwillimporttelephonesbecausetheinternationalrelativepriceoftelephoneislowerthanitsno-tradeequilibriumprice.2.Usethefollowinginformationtoanswerthequestionsbelow.Computers:Salesrevenue:PC×QC=150Paymentstolabor:W×LC=75Paymentstocapital:RK×K=75Barley:Salesrevenue:PB×QB=150Paymentstolabor:W×LB=70Paymentstoland:RT×T=801)Holdingthepriceofcomputersconstant,supposethepercentageincreaseinthepriceofbarleyis10%andthepercentageincreaseinwageis5%.a.Determinetheimpactoftheincreaseinthepriceofbarleyontherentalsonland(nominalandreal).Answer:%4.148070%5150%10TRLBBTTPPRR%4.140%4.14CCTTPPRRb.Determinetheimpactoftheincreaseinthepriceofbarleyontherentalsoncapital(nominalandreal).Answer:%15%10%5BBKKPPRR%50%5CCKKPPRRc.Whatistheimpactoftheincreaseinthepriceonthewelfareoflabor?Answer:Theimpactoftheincreaseinthepriceofbarleyonthewelfareoflaborisambiguousbecauselaborgainsintermsofcomputersbecausethepriceofcomputersremainedconstant,whilewagesloseintermsofbarleybecausethepercentageincreaseinthepriceofbarleyishigherthanthepercentagechangeinwage.d.Summarizetherelationshipamongthechangesinnominalfactorprices(capital,labor,land)andthechangeintheproductprice.Answer:2)If,insteadofthesituationgiveninproblem1),thepriceofcomputerswastofall,wouldlandownersorcapitalownersbebetteroff?Explain.Howwouldthedecreaseinthepriceofcomputersaffectlabor?Explain.Answer:Similartothesituationgivenintheproblem1),capitalownerswouldbeworseoffbecausetherentaloncapitalwouldfallbymorethanthedecreaseinthecomputerprice.Landownerswouldbebetteroffastherentalonlandrisesevenwithouttheincreaseinthepriceofbarley.Theeffectonlaborbecauseofthedecreaseinthepriceofcomputersisalsoambiguous.Wagesfall,solaborisworseoffintermsofbarley,butbecausethedropinwageislessthanthepercentagedecreaseinthepriceofcomputers,laborgainsintermsofcomputers.