Macroeconomics

Q1: Compare the Ricardian Model with the Specific-factors model from aspects of their assumptions and key lessons. Q2: Find a real-world international trade relevant case from news, and apply the key lessons of the specific-factors model to explain that news. Try to figure out whether the relevant labor, capital owner and land owner gains or losses in your case. Why. Q3: Assuming that the relative price of agriculture products increases (i.e., Pa increased, Pm unchanged), then show the inequality relationships between the percentage changes of price of agriculture products, wage, rental on land, and rental on capital. Q4: Explain why MPK increase when more labor move from agriculture industry to manufacture industryQ5: Manufacturing Industry: Sales revenue =Pm-Qm=100$ Payments to labor=W-Lm=60 $ Payments to capital =Rk-K=40 $ Agriculture Industry: Sales revenue = Pa-Q:=100$ Payments to labor = W-L==30 $ Payments to land =R+T=70 $ Suppose that the price of agriculture products P: rises by 10%, whereas the price of manufacturing products Pm does not change at all. The percentage change of wage is AW/W is 5%, and increase in the wage applies in both industries. Calculate the percentage of rental on land, and rental on capital, show the calculation process