Question
36.France can produce either 50 unit of cheese or 80 units of wine per labour hours. Canada can produce either 92 unit of cheese or
36.France can produce either 50 unit of cheese or 80 units of wine per labour hours. Canada can produce either 92 unit of cheese or 63 unit of wine per labour hour. Suppose Canada follows its comparative advance in deciding what to produce and trade with France at a trade price of 1.25 units of wine per unit of cheese. For every 5500 units of goods that Canada produces and trades with France, what are the gains from trade in terms of the others goods?
Answer: ______units
Do not round your calculation until you reach the final answer.
37.Supose a 1 year UK T-bills pays 3.38% and a 1-year Canadian T-bill pays 1.83%. the current spot exchange rate is 1 British pound (GBP) = 1.7333 Canadian dollar (CAD) and the 1-year forward exchange rate is 1 GBP = 1.6773 CAD. What arbitrage profit can an investor earn on an investment value of CAD 1 million?
Answer: ____ CAD
Do not round your calculation until you reach the final answer.
38.Supose that labour supply is perfectly elastic at an hourly wage of 26.3$ u to a quantity of labour of 6312 and for an hourly wage greater than or equal to 26.3$ the labour curve os LS = -6312 + 480W. The labour demand curve is Ld=49200-520W. Calculate the amount of economic rent at the market equilibrium
Answer: _____$
Do not round your calculation until you reach the final answer.
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