o n ottr Code',

Cnfm hat ubmitt

ereb
hsork
entirely m oon 4 I hawe

inh rarahm t h ovk T Abmit o

s o e boek exe ) 'ven amu's tama

Ccess i n g h s n rnVi'ding wnauhoi

Mateud tu othor can qelatAAubmittina
s ope bosk- exam. I
ameia onn hr he twrn Hhe e vam , sKile besrm

invlated b ms truetor mline

Daye 15 July Name Saurabk Ref

CouTS MA E C
SemeaA-e ,
SubTect: Intenaim
t6de

ArnS-
Cc) Home Counlr

L 4

Foreq Co unt
a =2

L== LOTD 2 2 cloh

No SimCe

a a m honme Couny

bS hyher a Campard
Compard
MPL s loth
Relg Bcloh im Coun
joreign Coun
to Relahve MA o
in
County hos
Combarative a Van
a e

Home
reura clo H
cDncude thatfor Coun b
Simlar
Simlaryy e can

'
T ie
o
tn Procfucs'ng
as Co mpavafive odvanha

Scofe
t'sfor mu ally benefra'al raele
6ere
s
betuoecn H t F Hh Patern o,rad
otl e o t iee
Sueh het Fore Co
unt
V r c - Vers.
import cloth
 2 eloth ).
Co.)Lt P elatv rtce
numerair
nterms eu- )
rate
E ea waqe

Kmlaly fo foran Coun

we hoNe

Note Hhat tnPosttrode qb, ree hoazs

aTOss oo Ceuntsies
equafis eel
Vale fnils.
lboY tho
trod
Fre rade pe o zoe 2
t r mupally aoinf
0eld
Lo be
e CEP*)

Can be Cmareo wi
ualitatHve e Sult he
C ntmies in
he pst trade
Heckseher- OhIin -Samuelsm mo o usim

heorems
horem
hopler
Samye ls om
f the rice o caft ntanst'vevv 1, en

labor tensive jve) ccreus,

P Crelatve n e
r ec e s k etms m
hen
h en ( ) aso
aovels MPL; ode e}nes hou
recuchon b e t h
es bsth Se cfos R
ec toss VMPLE declm
declines in b th Aecrs. nt Cb
nCreares in bo t e c to
O) Facfor ee equasoatHn
hase the Seme et
I h Couns
n ty's ar
frooliha they
bene-
ot a mutuay
a r eare treeing
V 0
TaHo
el Pe o
tria otespnke ratio hapore
becaue bo
oso e Commes a aCTOSs he Cotn tae
ts
1he ve for Y
Cuntre hawe ienh tehnolga
als aeoss hhe Caunties
7 e
Vi-a-vi'k F Gor-
be capitabunelant
Considevmg H t
n coanty) ie, >*.
Pres-trade eqb.
c, In anard
T
n pdueh'm

k Capi

AB> |inean Cumb

B

shveh 43i1
F've

m beth Counies, teenteal

Hh n Coo ple te beualisetm

ientte Rs technolg ok k euof

fac Tetuns he Contr1s

P M, rea onge MPL

Tea ren f r l J . MP
Ans-2 Parador (Late 1940s)
LaonA

haw e
exlatn h pattern o r a d e
Coruntmie aburdant
cshra hen 6nc ulel expect
bas ket
had, hcir eport
h a teve c hht the
e
hat

skiek exfenSively used h T

rhng oo-s
lats z+ o

a l r But m h cose uniko

Hhe Case

broViel Leoemer
Len Hf P aTel o a

Cri'Haue

LonHff as ing jh
( ) ezp +) Empt
basked
bas kt

tocusi 7
hi's Palou'eybcane lenH
Loas
nly
óvenol
OVenal

t eztor but not on

Cmaoen
laet
Citl-la bor ratto, skL basally

cefrtl-laber
eeeb b k i n oVe vall-
Leamey oc
he hole d e
ko hteh basi'ca lly exflaims
reto,
roele o be
Leeumer fhcorem Capite reWeale a
ounty ff
f he Hhe
oaboY by a

bundant reatve n Hhe

emboefied în proeuiom
Capit
labov rat
e e e e o s h e
cpitad-lahor rasi'o m boi!

n CmSumpt'an

k t- To on-het ezposs )
-F
Ans 3
speeie factor short-run mooe
vodueton miht b Ve ecifr
It means
cans faefor og
to heroduchòn oaarueular arod
hawe tso
where u
yu
the model is wheve
T
he
Simplest Verston

rcters. One peaf

cetors (7oo4 4rd2) 4 hree
ts
Sectore + e ecfor
acor for e ach o h t
be usd
Commo o beth se ctors und CneaS l
Cen't be 2Xx2 2X2
inether he ooScctors.I+

orld pnce
that
Fora Amall Coun ry, hwe know chor
e
Cn change
Buf
emaun wnCha
ch an
ndmoment uneh cngd
increass, qovs pMte
endaoment
* I f tach
Lmcreases
speci'Hie factpv K
G) Enloromen V

4 e r a n e b/
Val u
maram af
Phyrcaf
PrD cvet
) labor
O
A LO niTease
n enaornen of
La ber

Tak ing O a 0 r i n qemcned fo laboY mSe cto.

V, S u f f l y ot labor tn Sec tor

o V2V, emand fo laboT Ae c for 2.

lakng O as

Aupfly o lakov
 As K, 45, Mo 7na ba ieval o labor limere

ht
tht Acctor re urhs o la bo 15, Vv t t v
Also lahov s movimga So
in hat Aec o r
M 1mal PhydiaValu of la bor

also Such hat value of o n Phgael

a
Value laho Teac hes a - eqb. ( )

Coneluslom

Value manal produeF laber (ts to ) , o7 n a n d

leboY in Aector 2 nereas es (A to A*).

L)
nctcase inlaboY empleye in se chv 2

legs han to imcrease

m ehdromt
PToorHmete

k , (A A').
dereases 4 g, incTeases C: K 7)

han rootbnetly to h e
ut
But t easesess

mcrease

oe nt hold
yboynsk: Ffect x 2

mobtle c t labor nereaus te, Loaa- rae

mCTes ( Lo* ) bat less han rohmaflq , Comred

he LnTe ase imeho nom ent o k CAA)

Sinte Joos pee changd ,he uni Cost Yemams

un chau Zere Prarconehns.

eos

pecini factor ( ) in boh, at e c

ld
C ndo oment mobile tor nCseases

,o

4 boh mCreas es becauses w mOTe amaun

Labor arai lable for boh he Acclo7. Ato hieh one
9,)
s
r a t r dne elaskshy oqemanol to labor

elostu emand tor la bor tmplie rter

h
Lcveose im out put that ector

Since aTe unchanqd as MPL 4 VMPL eehes

Lnbo Scetors he woqe rate oeeles, Cne ae tern

ncrease to u T e l n t t Cost
secihe fac tovs
are
unchanges Czevo rtCond Hms).
Ans 4
Vector C,
Vec tor Contum fHn
Ca)
Autarky brocfue ton
n

oL
PA A = P" c
Do mferm-eiafe
Assume
tee hnol-7 CRS, n o n - a h a h a n

ede Ccos s.

pmie Vecto s P PA
Consierhe hoorld
L e t roue h m b E factor byues b at p fr

rade rope tit-ve eqb

S Jvanment Aubsidies ave kuth hat Cnsume

Cenine to P" zods + meeve

en it mut be r u that-
P * PA Pc"C
(: zA=#] l 'Pfevar-d
t *

roruehon bea *

Unoler thi ConsucdAatiom,the aoVt bn ook

a pice P*frm prae ucers + e l l Fo Censuy es ct

P e e p " , otH et ov e N e h ue
bang eA-P*) C
90kl

Plu oA om omest
ov hgsncton at
Consunen

4sll h roduced, siHh naf

rwemue being A*- A) L.

n L Con Sumin q PhcA

Consumes

Met ov P-pA) A + (s )L- "L-Pten

 PACAwAL
auta
*L p* >p*cA
Note,
toade
Rev enu trm
b t t e r C m b a n e to
T6
TeNenus

carhed auterd
e fov
pruel u c
h rm

- p*cA>o

SeNehue O
Net+ v t

Loetne unede
Atl Comcumers have e m e CmsumbHn
hee ii Aplas
frade as uhed aufady , und

rwenue for t
t r a d e over aufary.
Paveto Anperionty
Count 3ive be rfaet
This ue r all e
Cmpe+Hm CRS.

Covt
p* Tahe
Proo uce p ule o rduse * at

hhn zA pAAna in d r a So, t 7na

hun
eNent

T enu CAnS mos an a Soun(evel o oel fa

inboh trade t auufarby, Hou hawe to encae, h a

howe eme lUme Cne h asc t e n Sme

CuTmo ' ced Such h a f Hhe Cea
bac
phima Cnnap buelle, H hael tin upu.
 e compos 1 ns
Jom trade

A uPT

Ea
A B PPF

S Auftar ky eb
Au tark P-ratho

MRS sonht S
MRT
VV 5 Intern atona P- r a to
NBV
aooe Telahvely mo
n t h e o r l d mkt
rensiVe
Lsitispe cialize i n
hat
L uch
Produchm ot u d
S vould
Svo4ld
broduchm paint
utark Produchn
ill

olong
hold.
P,sksn V'v
- e per'nt
ngnH'al to PPF.

rul o mo eert re
ccóhom ex ch
a eeckge
1mport zovd
lhe V'v
Oule take p lae almg P-
Cen cohomg
Sueh h a t P line
oodd
Lokène
be at C Re zkast
ied to
us gat
Tndifferen c2

attainable Poct
curve arel h a t is ve presentd
by UP
 So, he tot 7 rcm rade

E vleut
R cenaaseg Variatm that Ccongr
mave frem autarky o ree trede
V ununt income that yqumd to m e S m in1he

ewd o o l t e e Ua to mes lee of hoel tau u Fr e4

Fia:-2
h e movenment for the
consuneTsr a l e etare UA
beli ertkorp d
h s oJmunt meas med în eamo o o e l o N r r

hewm Suumphm aams trm hodeCPuvaly

cuc o ezche

T f }ro ducer aTalsSo allnwer to rrallo cafe fesrrees

and respome ne iee în Loorl4 mkt, Hotl
tom S to s' wk hy Aea as're in vvd
zuped , L5

alto l Dv, Coms wme

Can Terch a
Cens
bundle C, h e h is mu
mov ent
PS U tsqnn
to NV. CProduchn 7ns m treode)

2an from trate

=
lo
oN NV
lnel ncome
7urd te aflatn astarden (ee o