Economics Homework Help

Question 1：How COVID-19 effects the trade activities around the world. Please briefly explain with suitable examples.

Question 2：Suppose that in the absence of trade, Home consumes two cars and nine TVS, while Foreign consumes nine cars and two TVs. Add the indifference curve for each country to the figures in Problems 3 and 4. Label the production possibilities frontier （PPF）， indifference curve （U1）， and the no-trade equilibrium consumption and production for each country.

Question # 3：Suppose when Japan opens to trade, it imports rice, a labor-intensive good

a. According to the Heckscher-Ohlin theorem, is Japan capital-abundant or labor-

abundant？ Briefly explain

b. What is the impact of opening trade on the real wage in Japan？

c. What is the impact of opening trade on the real rental on capital？

d. Which group（capital owner or labor） would support policies to limit free trade？

Briefly explain.