克鲁格曼国际经济学答案~.docVIP

- PAGE Chapter 3 In 1986, the price of oil on world markets dropped sharply. Since the United States is an oil-importing country, this was widely regarded as good for the U.S. economy. Yet in Texas and Louisiana 1986 was a year of economic decline. Why? It can deduce that Texas and Louisiana are oil-producing states of United States. So when the price of oil on world markets declined, the real wage of this industry fell in terms of other goods. This might be the reason of economic decline in these two states in 1986. 2。An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depends on labor input as follows: To analyze the economy’s production possibility frontier, consider how the output mix changes as labor is shifted between the two sectors. Graph the production functions for good 1 and good 2. Graph the production possibility frontier. Why is it curved? Q Q1 Q2 L1 L2 PPF The PPF is curved due to declining marginal product of labor in each good. The total labor supply is fixed. So as L1 rises, MPL1 falls; correspondingly, as L2 falls, MPL2 rises. So PP gets steeper as we move down it to the right. The marginal product of labor curves corresponding to the production functions in problem2 are as follows: Suppose that the price of good 2 relative to that of good 1 is 2. Determine graphically the wage rate and the allocation of labor between the two sectors. With the assumption that labor is freely mobile between sectors, it will move from the low-wage sector to the high-wage sector until wages are equalized. So in equilibrium, the wage rate is equal to the value of labor’s marginal product. The abscissa of point of intersection illustrated above should be between (20, 30). Since we only have to find out the approximate answer, linear function could be employed. The labor allocation between the sectors is approximately L1=27 and L2