Question
Consider a Heckscher-Ohlin model wheretwo planets, Dantooine and Tatooine, use high-skill labor and low-skill labor to produce lightsaber crystals (C) and hyperdrives (H). Suppose that
Consider a Heckscher-Ohlin model wheretwo planets, Dantooine and Tatooine, use high-skill labor and low-skill labor to produce lightsaber crystals (C) and hyperdrives (H). Suppose that both kinds of labor are freely mobile between both industries.
Question 1 of 22 Points Click to see additional instructions What follows is a numeric fill in the blank question with 2 blanks. Round everything to the nearest tenth (e.g., 8.25 becomes 8.3) Suppose that by opening up to tradethe price of crystals in Tatooine falls by 10% and the price of hyperdrives does not change. Use the following information to determine how these affect the payments to high-skill and low-skill labor:
In this case, the wage rate to high-skilled labor would change by ______ % and the wage rate to low-skilled labor would change by _______. %. Fill in the blanks |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started