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    Econ309 Ass2

    Uploaded by

    Fayçal Sinaceur
    1. This document provides instructions for an economics assignment due on February 10th, 2023. It instructs students to complete the assignment in teams of 3 and to submit neat work that follows university rules. 2. The assignment asks students to consider data on the labor units required to produce cheese and wine in two countries, H and F. Students are to determine which country has an absolute and comparative advantage in each good, and calculate autarkic and free trade equilibrium prices, production, consumption and welfare for each country. Students also analyze trade patterns, the wage ratio bounds, and sources of gains from trade.

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    Econ309 Ass2

    Uploaded by

    Fayçal Sinaceur
    24 views1 page
    1. This document provides instructions for an economics assignment due on February 10th, 2023. It instructs students to complete the assignment in teams of 3 and to submit neat work that follows university rules. 2. The assignment asks students to consider data on the labor units required to produce cheese and wine in two countries, H and F. Students are to determine which country has an absolute and comparative advantage in each good, and calculate autarkic and free trade equilibrium prices, production, consumption and welfare for each country. Students also analyze trade patterns, the wage ratio bounds, and sources of gains from trade.

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    Econ309-Ass2

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    1. This document provides instructions for an economics assignment due on February 10th, 2023. It instructs students to complete the assignment in teams of 3 and to submit neat work that follows university rules. 2. The assignment asks students to consider data on the labor units required to produce cheese and wine in two countries, H and F. Students are to determine which country has an absolute and comparative advantage in each good, and calculate autarkic and free trade equilibrium prices, production, consumption and welfare for each country. Students also analyze trade patterns, the wage ratio bounds, and sources of gains from trade.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    24 views1 page

    Econ309 Ass2

    Uploaded by

    Fayçal Sinaceur
    1. This document provides instructions for an economics assignment due on February 10th, 2023. It instructs students to complete the assignment in teams of 3 and to submit neat work that follows university rules. 2. The assignment asks students to consider data on the labor units required to produce cheese and wine in two countries, H and F. Students are to determine which country has an absolute and comparative advantage in each good, and calculate autarkic and free trade equilibrium prices, production, consumption and welfare for each country. Students also analyze trade patterns, the wage ratio bounds, and sources of gains from trade.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    Mohammed VI Polytechnique - U

    FGSES
    ECO 309
    Assignment 2, Due : Febr 10th 2023

    Plz submit by teams of 3 students. Submitted work has to be neat and respect accepted rules for
    university work.

    Winter 2023 F.R. Sinaceur

    1. Consider the following:

    Cheese Wine

    H aLC=2 aLW=5

    F aLCF=3 aLWF=6

    (i) Which country has absolute advantage in producing (a) Cheese and (b) Wine?
    (ii) Which country has comparative advantage in producing (a) Cheese and (b) Wine?
    (iii) Find the autarkic equilibrium price ratio, and the production, consumption and
    welfare levels for each country.
    (iv) Find the free trade equilibrium price ratio, and the production, consumption and
    welfare levels for each country.
    (v) Find the trade patterns and graph each country.
    (vi) Find the upper and lower bounds for the free trade wage ratio. What happens if the
    wage ratio is exactly equal to its upper bound? Why?
    (vii) Discuss what determines the trade patterns and the source of gains from trade.

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