Exam 1 (ricardian, hecksher-olin, internal/external economies of scale) Flashcards
1
Q
unit labor requirement
A
laLS - amount of labor in hours needed to produce one good
2
Q
Opportunity cost (of x in terms of y)
A
aLX/aLY
3
Q
production possibility (autarky)
A
L/aL on axes
4
Q
production possibility (trade)
A
L/aL w/ good specializing in
then take rate of trade to find the other axes
5
Q
Production Function
A
Qx = #Lx
number is the number of goods produced in an hour
6
Q
labor abundant
A
abundant in labor IN RELATION TO another factor
7
Q
gravity model
A
Tij = (A * Yi * Yj)/Dij
Tij = value of trade, Yi = GDP of Y, Yj = GDP of J, Dij = distance between y and j
8
Q
A
