Download Powerpoint figures part II

capital
A
B
C
Isoquant M = 1
0
labor
Figure 4.2
capital
M=1
B
A
Isocost line0
C
K m ( w, r )

w
r
M=1
0
Km
m w

Lm 1   m r
Lm ( w, r )
Figure 4.5
Isocost line1
labor
capital
M=1
D
C
K m ( w0 , r )
E
K m ( w1 , r )
M=1
Lm ( w0 , r )
0
Figure 4.7
Lm ( w1 , r )
labor
capital
1 / r0
1 / r1
1/ w
0
Figure 5.2
labor
capital
M 0  1 / pm0
F  1/ p f
M 1  1 / pm1
A
B
0
labor
Figure 5.3
capital
M  1 / pm
Unit value isoquant Manufactures
1/ r
A
B
m w
1m r
f w
1 f r
Unit value isoquant Food
F  1/ p f
Unit value cost line
1/ w
0
Figure 5.4
labor
capital
1 / r0
A
1 / r1
A’
B
M  1 / pm 0
M  1 / pm1
B’
F  1/ p f
1 / w0
0
Figure 5.7
1 / w1
labor
capitalf
F=1
1
Of
2
laborf
3
capitalm
M=2
K
4
Om
Figure 6.3
L laborm
wm
M2
M1
wf
F0
M0
E1
wm1
F1
E2
wm0
E0
Om
Lm
wf0
E3
Lf
shift as a result of price increase Manufactures
shifts as a result of capital movement from Food to Manufactures
Figure 6.7
Of
O’f
Of
K
K f / Lf
K f / Lf
E0
E1
K m / Lm
Om
Figure 6.8
L0
L1
delivery of Manufactures
Capital owners
capital services
(rental income)
(spending m on Manufactures)
Production of
Manufactures
Consumers
Laborers
Production of Food
labor services
(wage income)
delivery of Food
direction of goods flows
(direction of money flows)
Figure 7.8
(spending 1-m on Food)
price
supply
p2
p0(1+t)
tariff
p0
imports with tariff
demand
imports without tariff
q0
q1
q2
q3
increase producer surplus
net loss; Harberger triangles
decrease consumer surplus
government revenue
Figure 8.3
q4
quantity
price
supply
p2
p1(1+t)
tariff
p0
p1
imports with tariff
demand
imports without tariff
q0
q1
q2
q3
q4
increase producer surplus
-/-
= net loss; possible gain
decrease consumer surplus
government revenue
Figure 8.4
quantity
U1U2
U3
ppf
Figure 8.6
Food
production possibility frontier
iso-utility curve4
trade indifference curve4
C4
D4
C3
C2
D3
C1
D2
trade indifference curve0
D1
Manufactures
(consumption)
Figure 8.11
0
Manufactures
(export)