Question & Answer: Help 见令46% arkets Fall 2017 Homework ter 1 Homework Score: 0 of 1 pt 5 of 8 (4 complete) HW Score: 18.19%, 1.46 of blem 1-5 (algo…..

Help 见令46% arkets Fall 2017 Homework ter 1 Homework Score: 0 of 1 pt 5 of 8 (4 complete) HW Score: 18.19%, 1.46 of blem 1-5 (algorithmic) Trade at China’s Domestic Price. This problem ilustrates an example of trade induced by 1,000 production units. With one unit of production (a mix of land, labor, capital, and technology), China can produce either 12 containers of toys or 8 France can produce either 3 cases of toys or 8 cases of wine. Thus, a production unit in China is four times as efficient compared to France when producing toys, equally efficient when producing wine. Assume at first that no trade takes place. China allocates 825 production units to building toys and 175 production units to producing wine. France allocates 175 production units to building toys and 825 production units to producing wine a. What is the and consumption of China and France without trade? b. Assume complete specialization, where China produces only toys and France produces only wine. What would be the effect on total production? c. China’s domestic price is 12 containers of toys equals 8 cases of wine. Assume China produces 12,000 containers of toys and exports 2,100 to France. Assume France produces 8,000 cases of wine and exports 1,400 cases to China. What happens to total production and Calculate the pro and consumption of China and France without trade below: (Round to the nearest integer) is no trade Toys units to Enter any number in the edit fields and then click Check Answer. Clear All