International trade allows Home and Foreign to consume anywhere within the colored
lines, which lie outside the countries’ production possibility frontiers. And the indirect method, specializing in producing only one production then trade with other country, is a more efficient method than direct production. In the absence of trade, Home could gain three bananas by foregoing two apples, and Foreign could gain by one 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. So both Home and Foreign gain from trade. 国际贸易允许本国和外国任何地方在分界线之内消耗，在一国生产可能性边境之外说谎。 并且间接方法，专门研究导致一生产比直接生产然后只换与其他国家，是一个高效率的方法。 在没有贸易时，首页可能由前面二个苹果获取三个香蕉，并且外国可能由一前面五个香蕉获取。 贸易允许每个国家为一个苹果换二个香蕉。 首页只能由前面二个苹果然后获取四个香蕉，当外国时能由前面二个香蕉获取一个苹果。 因此首页和从贸易的外国获取。 4．Suppose that instead of 1200 workers, Home had 2400. Find the equilibrium relative price. What can you say about the efficiency of world production and the division of the gains from trade between Home and Foreign in this case?
RD: x?1 y?x?[0,1)? RS: ?x?1?x?(1,??]? ∴x?ey?1.5y?[1.5,5] y?523ey?1.5
∴Pa/Pb?1.5
In this case, Foreign will specialize in the banana production, export bananas and import
apples. But Home will produce bananas and apples at the same time. And the opportunity cost of bananas in terms of apples for Home remains the same. So Home neither gains nor
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loses but Foreign gains from trade.
在这种情况下，外国将专门研究香蕉生产，出口香蕉和进口苹果。 但是本国同时将生产香蕉和苹果。 并且香蕉的机会成本根据苹果的本国的依然是同样。 因此本国不获取也不丢失，而是从贸易的外国获取。
5．Suppose that Home has 2400 workers, but they are only half as production in both industries as we have been assuming, Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade compare with those in the case described in problem 4?
In this case, the labor is doubled while the productivity of labor is halved, so the ＂effective labor＂remains the same. So the answer is similar to that in 3. And both Home and Foreign can gain from trade. But Foreign gains lesser compare with that in the case 4.
6．”Korean workers earn only $2.50 an hour; if we allow Korea to export as much as it likes to the United States, our workers will be forced down to the same level. You can’t import a $5 shirt without importing the $2.50 wage that goes with it.” Discuss.
In fact, relative wage rate is determined by comparative productivity and the relative demand for goods. Korea’s low wage reflects the fact that Korea is less productive than the United States in most industries. Actually, trade with a less productive, low wage country can raise the welfare and standard of living of countries with high productivity, such as United States. So this pauper labor argument is wrong.
实际上，相对工资率取决于比较生产力和对物品的相对需求。 Korea’s低工资反射事实韩国比多数产业的美国较不有生产力的。 实际上，与一个较不有生产力，低工资国家的贸易可能培养国家福利和生活水平有高生产力的，例如美国。 因此这个叫花子劳方论据是错误的。
7．Japanese labor productivity is roughly the same as that of the United States in the manufacturing sector (higher in some industries, lower in others), while the United States, is still considerably more productive in the service sector. But most services are non-traded. Some analysts have argued that this poses a problem for the United States, because our comparative advantage lies in things we cannot sell on world markets. What is wrong with this argument?
The competitive advantage of any industry depends on both the relative productivities of the
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industries and the relative wages across industries. So there are four aspects should be taken into account before we reach conclusion: both the industries and service sectors of Japan and U.S., not just the two service sectors. So this statement does not bade on the reasonable logic. 所有产业的竞争优势取决于产业的相对生产力和横跨产业的亲戚薪水。 因此，在我们得出结论之前，有四个方面应该考虑到： 产业和日本和美国，不仅二个服务部门的服务部门。 不因此这个声明在合理的逻辑出了价。
8．Anyone who has visited Japan knows it is an incredibly expensive place; although Japanese workers earn about the same as their U.S. counterparts, the purchasing power of their incomes is about one-third less. Extend your discussing from question 7 to explain this observation. (Hint: Think about wages and the implied prices of non-trade goods.)
The relative higher purchasing power of U.S. is sustained and maintained by its considerably higher productivity in services. Because most of those services are non-traded, Japanese could not benefit from those lower service costs. And U.S. does not have to face a lower international price of services. So the purchasing power of Japanese is just one-third of their U.S. counterparts.
美国的相对更高的购买力由它的在服务的相当地更高的生产力承受并且维护。 由于大多那些服务non-traded，日语不可能受益于那些更低的服务费用。 并且美国不必须面对服务的一个更低的国际价格。 因此日语的购买力是他们的美国相对物的三分之一。
9．How does the fact that many goods are non-traded affect the extent of possible gains from trade?
Actually the gains from trade depended on the proportion of non-traded goods. The gains will
increase as the proportion of non-traded goods decrease. 10．We have focused on the case of trade involving only two countries. Suppose that there are many countries capable of producing two goods, and that each country has only one factor of production, labor. What could we say about the pattern of production and in this case? (Hint: Try constructing the world relative supply curve.)
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.
Chapter 4
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1. In 1986, the price of oil on world markets dropped sharply. Since the United States is an
oil-importing country, this was widely regarded as good for the U.S. economy. Yet in Texas and Louisiana 1986 was a year of economic decline. Why?
It can deduce that Texas and Louisiana are oil-producing states of United States. So when the price of oil on world markets declined, the real wage of this industry fell in terms of other goods. This might be the reason of economic decline in these two states in 1986.
2。An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows:
To analyze the economy’s production possibility frontier, consider how the output mix changes as labor is shifted between the two sectors.
a. Graph the production functions for good 1 and good 2.
Q1?Q1(K1,L1)
Output 10090 8070 6050 4030 2010 000 Output 100 9080 7060 50Q2?Q2(K2,L2)
Production Function for Good 110093.938.125.110203048.657.56673.680.787.4405060708090100Labor Input for Good 1Production Function for Good 252.561.869.375.881.510095.586.791.4
4039.83020b. Graph the production possibility frontier. Why is it curved? 1000010203040精选
5060708090100
Labor Input for Good 2Q2?Q2(K2,L2)Q2 100L2 PPF Q1 100L1 Q1?Q1(K1,L1)
The PPF is curved due to declining marginal product of labor in each good. The total labor
supply is fixed. So as L1 rises, MPL1 falls; correspondingly, as L2 falls, MPL2 rises. So PP gets steeper as we move down it to the right.
2. The marginal product of labor curves corresponding to the production functions in
problem2 are as follows:
a. Suppose that the price of good 2 relative to that of good 1 is 2. Determine
graphically the wage rate and the allocation of labor between the two sectors.
With the assumption that labor is freely mobile between sectors, it will move from the low-wage sector to the high-wage sector until wages are equalized. So in equilibrium, the wage rate is equal to the value of labor’s marginal product.
假设劳方自由地是在区段之间的机动性，它从低工资的区段将移动向high-wage区段，直到薪水被调平。 因此在平衡，工资率与labor’s边际产品的价值是相等的。
MPL1?P1?MPL2?P2P2/P1?2
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