Problems-and-Answers-to-Chapter-3

1、Problems and An swers to Chapter 3Q1: Home has 2,400 un its of labor available. It can produce two goods,oranges and pears. The unit labor requirement in orange production is 6, while in pear product ion it is 4.a. Graph Home' s producti on possibility fron tier.b. What is the opportunity cost o

2、f oranges in terms of pears?c. In the absenee of trade, what would be the price of oranges in terms of pears? Why?本國共有2400單位的勞動，能生產兩種產品：橙子和梨。橙子的單位勞動投入是 6,梨的單位勞動投入是 4。a. 畫出本國的生產可能性邊界。b. 用梨衡量的橙子的時機本錢是多少？c. 貿易前，橙子對梨的相對價格是多少？為什么？A1: Given L = 2400, aLo = 6, Nlp = 4.a.Home country ' s product ion pos

3、sibility fron tier is Li ne AB.b. The opportunitycost of oranges in terms of pears is equal to the absolutevalue of the slope of Home ' s Production Possibility Frontier (PPF)=aLc/a lp=6/4=3/2c. In the abse nee of trade, the price of oran ges in terms of pears would be equal to their relative un

4、it labor requirements (See page 31 in textbook):Po/P p= a Lc/a lf=6/4=3/2Under this eondition,the wages in both industries are equal and both goodswill be produced.Q2: Homeis as described in problem 1. There is now also another country, Foreign, with a labor force of 1600. Foreign' s unit labor

5、requirementin orange producti on is 10, while in pear producti on it is 2.a. Graph Foreign ' s production possibilities frontier.b. Con struct the world relative supply curve.假設本國的情況和 Q1相同。外國擁有1600單位的勞動，外國橙子的單位勞動投入是10,梨的是2。a. 畫出外國的生產可能性邊界。b. 畫出世界相對供應曲線。A2: Given L*=1600, aL(* = 10,aLP* = 2.a.For

6、eig n country ' s product ion possibility fron tier is Li ne CD.b. aLc/a lp=6/4=3/2, a* Lc/a* lp=10/2=5,(L/a Lo)/(L*/a lp)=(2400/6)/(1600/2)=1/20 (Qo + Qo*)/(Qp + Qp*)Q3: Now suppose world relative dema nd takes the followi ng form: Dema nd for oran ges/dema nd for pears = price of pears/price o

7、f oran ges.a. Graph the relative dema nd curve along with the relative supply curve.b. What is the equilibrium relative price of oranges?c. Describe the patter n of trade.d. Show that both Home and Foreign gain from trade.現(xiàn)假定世界相對需求的表示如下：對橙子的需求/對梨的需求=橙子的價格/梨的價格a. 在相對供應曲線的同一圖上畫出世界相對需求曲線。b. 橙子的均衡相對價格是多

8、少？c. 描述此題的貿易模式。d. 說明本國和外國都可以從貿易中獲利。A3: Given (Do+ D0*)/(D p + Dp*) = FP/ FO, so RDcurve could be drawn by using function y=1/x. Y is orange ' s relative price P O P p, X is orange ' s relative quantity.a.a.a. Please see RD curve in the graph of Q2.b. The equilibrium relative price of oranges

9、 is determined by thein tersecti on of the relative supply and relative dema nd curves at point E (1/2, 2).c. At point E, where the relative price of oranges isbetween the twocountries ' pretrade prices. In this case, each country specializes in the product ion of the good in which it has a comp

10、arative adva ntage: Home produces only oran ges, Foreig n only pears.d. Con sider two alter nativeways of using an hour of labor. Onone side,Home could use the hour directly to produce 1/alp un its of pear.Alter natively, Home could use the hour to produce 1/alo un its oforan ge. These oran ges coul

11、d the n be traded for pear, with eachtrading for PdP p units, so the original hour of labor yields(1/a lO)(P o/Pp) units of pear. This will be more pear than the hour could have produced directly as long as(1/a lo)(P g/Pp) > 1/a lporFO/P p > a Lc/a lpIninternationalequilibrium,a.Oa lp < Po/

12、Pp < aLc*/a lp*, in this case,6/4 < 2 < 10/5, i.e. 3/2 < 2 < 5, Homecan produce oranges more efficiently by making oran ges and tradi ng them tha n by produci ng pears directly for itself, similar to Foreig n.Home can gain 3 un its of pear by reduci ng 2 un its of oran ge, while Forei

13、gn can gain 1 unit of orange by reducing 5 units of pear. With trade, each country can gain 1 unit of orange by reducing 2 units of pear. Then, Homecan gain 4 units of pear by reducing 2 units of orange, while Foreign can gain 1 unit of orange by reduc ing 2 un its of pear. So, Home can get 1 more u

14、nit of pear which is Home ' s gain from trade, while Foreign can save 3 units of pear which is Foreign' s gain from trade.Q4: Suppose that in stead of 2,400 workers, Home had 4,800. Fi nd the equilibrium relative price. What can you say about the efficiency of world product ion and the divis

15、io n of the gains from trade betwee n Home and Foreig n in this case?假設本國有4800名工人而不是2400名。求新的均衡價格。請評述在這種情況下世 界的生產效率和兩國之間貿易所得的分配。A4: If the nu mber of Home workers in creases from 2400 to 4800, the n the turning point will switch from (1/2, 3/2) and (1/2, 5) to (1,3/2) and(1, 5), respectively. The in

16、tersectionbetween the relative demandcurveand the relative supply curve will be located at (2/3, 3/2), lower tha nthe previous point. At this point, Homes indifferentin producing eitheroran ges or pears .In this questi on, Foreig n can still gain from trade.However, no matter there is trade or not,

17、the opport unity cost of orange relative to pear will stay the same, therefore, Homewill not gain or lose from trade.Q5: Suppose that Home has 4,800 workers but is only half as productive in both in dustriesas we have bee n assu ming. Con struct the world relativesupply curve and determine the equil

18、ibrium relative price. How do the gains from trade compare with those in the case describe in problem 4.假定本國有4800名工人，但是他們的生產效率只有Q1中假設的一半。畫出世界相對供應曲線，并確定均衡的相對價格。比擬本國在此題和Q4中的貿易所得。A5: In this case, “the effective labor productivity will not change,then the graph of the world relative supply curve and th

19、e equilibrium price will be the same as that in Q3.Q6: “ Chinese workers earn only $.75 per hour; if we allow China to export as much as it likes, our workers will be forced down to the same level.You can' t import a $12 shirt without importing the $.75 wage that goes with it. Discuss.“中國工人每小時的工

20、資僅為0.75美元，如果允許中國無限地向美國出口，美國工人的工資也會降到這個水平。你不可能只進口12美元一件的T恤衫，而不進口0.75美元的工資率。試分析這段話。題中雖然沒有出現(xiàn)“美國“，但是從ourworkers 和寫書人的國籍可以推斷出來。A6: This is a special example in“ Pauper Labor Argument . The key tothis question is that the relative wage is determined by the relative productivity and the relative dema nd. B

21、ased on the data in this questi on, productivity level and wages are closely related. China' s low wagereflects that productivity in most of Chin ese in dustries is lower tha n that in the same industry in the U.S. As mentioned in this Chapter, if high productivity country trade with low product

22、ivitycountry, the livingsta ndard of low wage country will in crease.Q7: Japanese labor productivity is roughly the sameas that of the United States in the manufacturing sector higher in some industries, lower in others, while the Un ited States is still con siderably more productive in the service

23、sector. But most services are non traded. Somea nalysts have argued that this poses a problem for the Un ited States, because our comparative advantage lies in things we cannot sell on world markets. What is wrong with this argume nt?在制造業(yè)部門，日本的勞動生產率大致和美國相同有的產業(yè)比擬高，有的比擬低。 美國效勞業(yè)的勞動生產率相當高，但是大局部效勞是非貿易品。一

24、些分析家認為這給美國經濟帶來了問題，因為美國具有比擬優(yōu)勢的產品無法再世界市場上出售。這個結論錯在什么地方？A7: The problem of this con clusi on is to determ ine the comparative advantage without considering all the information. In this question, 4 sectors n eed labor force: U.S. service sector, Japa nese service sector, U.S. manu facturi ng sector and

25、Japa nese manu facturi ng sector. It is not eno ugh to compare unit labor requireme nt in service sector. If U.S. labor in service sector is more efficient than that in Japan, the absolute adva ntage in service sector is n either a sufficie nt nor n ecessary con diti on to determ ine comparative adv

26、a ntage. To determ ine thecomparative advantage, we also need to know the ratio in industry.Comparative advantage is determined not only by the relative productivity within the industry, but also by the relative wage between industries.Q8: A nyone whohas visited Japa n know it is an in crediblyexpe

27、nsive place;although Japanese workers earn about the sameas their U.S. counterparts, the purchas ing power of their in comes is about on e-third less. Exte nd your discussion from question 7 to explain this observation. (Hint: Think about wages and the implied prices of non traded goods.)訪問過日本的人都知道日

28、本的物價很高，而日本工人的工資和他們的美國同行差不多， 結果他們收入的購置力比美國的少了1/3，擴展習題7的討論來解釋這個想象。(提示：考慮工資率和非貿易品的價格)A8: Although Japanese workers earn about the same as their U.S. coun terparts, the price level in service sector of U.S. is higher tha n that of Japan. This is because in service sector, the productivity in the U.S. is

29、 higher than that in Japan, so the price in the U.S. is relatively lower. The extra gai n from high productivity in creases the purchas ing power of U.S. workers. However, most services are non-traded, Japan cannot gain from low cost service of U.S. through trade and it is impossible for Japan to us

30、e the relatively low price in internationalmarket. At the sametime, U.S. cannot in crease the domestic price of service. Therefore, as the price level of services is relatively low and services are non-traded, the purchas ing power of U.S. is relatively higher tha n that of Japa n.Q9: How does the f

31、act that many goods are non traded affect the exte nt of possible gains from trade?許多產品不能進行貿易的事實對貿易所得的大小有什么影響？A9: Gai ns from trade can also exist in the form of non-traded. As the share of non-traded in creases, the gains from trade decrease. In other words, as more and more products cannot enter internationalmarket, the potentialgains from trade are lower and lower. If the tran sact ion costs are too high to trade, obviously, it is impossible for gains