国际经济学答案 (5).docVIP

PAGE 40Caves/Frankel/Jones - World Trade and Payments: An Introduction, Tenth Edition Chapter 6Factor Endowments and Trade II: The Heckscher-Ohlin Model PAGE 39 Chapter 6Factor Endowments and Trade II:The Heckscher-Ohlin Model ?Suggested Answers to Textbook Questions 1. If both goods are produced then to find prices use the competitive profit conditions. This should yield that the price of food is $4 and the price of clothing is $10. After the price of clothing rises to $15, to find the new wage and capital returns use the competitive profit conditions once again. This yields that the new wage is $11/3 and the return to capital falls to $1/3. Ranking the changes in percentage terms, wages increased the most, followed by the price of clothing, the price of food (unchanged) and then the return to capital (which fell). This raking corresponds to the results obtained from the Stolper-Samuelson theorem. 2. At point A, there are 4xc units of labor being used. Thus the ray with the slope of 1/4 can be used to represent the amount of clothing being produced. (a) If L ? 1000 and K ? 500, then full employment conditions yield that there will be 500/3 units of clothing produced and 1000/3 units of food produced. (b) The minimum level of capital that will allow full employment of both factors is 250. At this capital stock, only clothing is being produced. The maximum is 1000, where only food is produced. These can be found by using the full employment conditions and setting food and clothing production equal to zero respectively. (c) 3. (a) If L/K ? 3, then the country will produce a mixture of goods 4 and 5. Constructing unit value isoquants for each industry will determine this fact. Competitive profit conditions will then show that w ? 1 and r ? 12. (b) If the price of good 1 triples, then the unit value isoquant moves closer to the origin, showing that production of good 1 dominates the production of all other goods except good 4. At the same prices as in (a), the econ