This is my homework today.

TRADE AND MIGRATION This question explores migration in a two-good Heckscher-Ohlin model. Supposed we have a country (Home) that is endowed with capital K and labor L. It can produce two goods, clothing (C) and food (F) using its K and L endowment. It takes 4 units of labor and 2 unit of capital to make food; and it takes 2 units of labor and 5 units of capital to make clothing. Capital and labor are complements in production of both goods. Home has 160 units of labor and 20 units of capital, while Foreign has 120 units of labor and 120 units of capital. In summary, we have the following information: Technology: Factor Endowments: alf = 4 akr = 2 Home: L = 160; K = 20 aLc = 2 ake = 5 Foreign: L* = 120; K* = 120 10. Given the information above, show which country is capital abundant and which country is labor abundant. Show which good is capital intensive and which good is labor intensive. Which product will Home export? Which product will Foreign export? 1 1. Now suppose that Foreign is closed to trade but experiences an increase in the labor force through immigration from the Home country. This results in "biased" growth. Biased towards which sector? What happens to the relative price of clothing in the Foreign country? Does this change conform to the Rybczynski's Theorem? Explain.TRADE AND MIGRATION This question explores migration in a two-good Heckscher-Ohlin model. Supposed we have a country (Home) that is endowed with capital K and labor L. It can produce two goods, clothing (C) and food (F) using its K and L endowment. It takes 4 units of labor and 2 unit of capital to make food; and it takes 2 units of labor and 5 units of capital to make clothing. Capital and labor are complements in production of both goods. Home has 160 units of labor and 20 units of capital, while Foreign has 120 units of labor and 120 units of capital. In summary, we have the following information: Technology: Factor Endowments: alf = 4 akr = 2 Home: L = 160; K = 20 aLc = 2 ake = 5 Foreign: L* = 120; K* = 120 10. Given the information above, show which country is capital abundant and which country is labor abundant. Show which good is capital intensive and which good is labor intensive. Which product will Home export? Which product will Foreign export? 1 1. Now suppose that Foreign is closed to trade but experiences an increase in the labor force through immigration from the Home country. This results in "biased" growth. Biased towards which sector? What happens to the relative price of clothing in the Foreign country? Does this change conform to the Rybczynski's Theorem? Explain.( Heckscher-Ohlin Model) There are two economies, Home and Foreign producing 2 goods, furniture (F) and cosmetics (C), using capital (K ) and labor (L). Furni- ture production is relatively more capital intensive than the production of cosmetics. The production functions for both goods satisfy the assumptions of constant returns to scale and diminishing returns to a single factor. Both economies share the same production technologies and consumers in all countries have identical homothetic pref- erences. Home has 600 units of capital and 400 units of labor while Foreign is endowed with 100 units of capital and 300 units of labor. Both factors can move freely across sectors. The world economy is currently under autarky. (a) Characterize an autarky equilibrium for Home. (b) Which country is relatively more labor-abundant?( Heckscher-Ohlin Model) There are two economies, Home and Foreign producing 2 goods, furniture (F) and cosmetics (C), using capital (K ) and labor (L). Furni- ture production is relatively more capital intensive than the production of cosmetics. The production functions for both goods satisfy the assumptions of constant returns to scale and diminishing returns to a single factor. Both economies share the same production technologies and consumers in all countries have identical homothetic pref- erences. Home has 600 units of capital and 400 units of labor while Foreign is endowed with 100 units of capital and 300 units of labor. Both factors can move freely across sectors. The world economy is currently under autarky. (a) Characterize an autarky equilibrium for Home. (b) Which country is relatively more labor-abundant?Part Three, continued A. (20 points) Show graphically and explain this country's market for walnuts, contrasting the market if there is free trade with the market if the set of government policies (tariff and ung quota) is in place. In comparison with free trade, show graphically and explain the gainers and the losers in the country as a result of the set of government policies, and how much each group gains or loses. $/kg Tenlew apubomoela 2.00 uis anbha Ji call ano vent woy all kg B. (7 points) It is now necessary for the government to rescind one of the two policies. The other policy can stay in place as it is. (That is, if the tariff is removed, then the import quota remains in place at 80 million kilograms per year. If the import quota is removed, then the tariff of 40% remains in place.) If you are a walnut producer in this country, which policy would you prefer to remain in place, or are you indifferent or unsure? Explain. [Note: Any use of or reference to a graph is at your option.]Question 19 1 pts X Investment Demand Y Interest Rate (%) Quantity of Money ($) 2 A 0 $75 150 225 0 $50 100 150 Investment ($) Investment ($) AS Price Level AD, (1=$150) -AD, (/=$100) -AD, (/=$50) Real GDP Refer to the graphs, in which the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at point Y on the investment demand curve. Given these conditions, what policy should the Fed pursue to achieve a noninflationary, full-employment level of real GDP?3. Import quotas Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where Sx is the supply curve and D* is the demand curve. The free trade world price of apples (Pw ) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 160,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SKto. (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 160,000 apples. 1000 SK 900 800 SK+Q 700 600 Price with Quota 500 PRICE (Dollars per ton) A 400 Change in PS 300 PW 200 DK Quota Rents 100 40 80 120 160 200 240 280 320 360 400 DWL QUANTITY (Thousands of tons)