// LabEWBoxPPCurveSpecs.txt. 12/6/2020. import Foundation class LabEdgeProdPossSpecs { let strLabPPCurveIntroSpecs :String = """ `` Lab Specs // Production function Good_X Good_Y // 0: Objective function full names X Y // 1: Objective function abbreviated names // The last is the name of the function itself; // e.g., U for utility. If _, there is no name 0.8 1.1 .1 1.0 // 2: Degrees of homogeneity 0.20 0.80 0.15 0.50 // 3: Cobb-douglas production exponents for constant returns to scale // Endowments Labor Capital // 4: Endowment full names L K // 5: Endowment abbreviated names 80 150 10 150 // 6: Labor endowments 80 120 10 120 // 7: Capital endowments // Rate of Substitution RTS // 8: Rate of substitution name // Production possibility curve 0 0 160 160 // 9: PP axis lengths // Trade related parameters 0.3 0.7 0.1 0.4 // 10: Cobb-Douglas utility function parameters 0.5 1.5 0.1 0.6 // 11: Trade price ratios Produce_more_X_and_less_good_Y Production_just_right Produce_less_X_and_more_good_Y // 12: Utility max advice array `` Prob Specs ` ****** Problem 0 Start Screen 1 - Production Possibility Curve: Introduction // 0: Title // Edgeworth box size Large // 1: Large graph or Small graphs Mouse // 2: Mouse or Slider // Visibility parameters N N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio F F F F // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.2 0.8 // 8: Capital exponents for good X and Y // Report results T F // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Understand how the production-possibility curve illustrates the combinations of goods that an economy can produce.`BLK There are three regions: `IND`0x2022 Points BELOW the production-possibility curve. `0x2022 Points ABOVE the production-possibility curve `0x2022 Points ON the production-possibility curve `IND Use your mouse to drag the point around the graph. Points BELOW the production-possibility curve: It is possible, but not desirable, for the economy to operate below the curve. At these points, it is possible to produce both more of good X and more of good Y by moving northeast. If it is possible to produce more of both goods simultaneously, why not do so? Points below the curve are `BLDproduction inefficient`BLD. Points ABOVE the production-possibility curve: It is impossible for the economy to operate above the curve; there are simply not enough resources for produce the quantities of good X and good Y represented by these points. Points above the curve are `BLDinfeasible`BLD. Points ON the production-possibility curve: The only way to produce more of good X is to produce less of good Y and vice versa. Points on the curve are `BLDproduction efficient`BLD. ` Problem 0 End ` ****** Problem 1 Start Screen 2 - Production Possibility Curve and Opportunity Cost // 0: Title // Edgeworth box size Large // 1: Large graph or Small graphs Slider // 2: Mouse or Slider // Visibility parameters N N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio F F F F // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.2 0.8 // 8: Capital exponents for good X and Y // Report results T F // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Illustrate the economist's notion of opportunity cost; that is, what must be foregone when an action is taken.`BLK A new scrollbar has appeared, a horizontal scrollbar below the graph. It allows you to move the production point along the production possibility curve. Initially, 25 units of good X and 115 units of good Y are produced. `IND`BLDQuestion:`BLD What is the opportunity cost of producing 25 more units of good X when 25 units of good X are being produced? `INDTo answer this question, adjust the scrollbar to increase the production of good X from 25 to 50 units. `IND`BLDQuestion:`BLD By how much does the production of good Y decrease? `IND Now, 50 units of good X are being produced. `IND`BLDQuestion:`BLD What is the opportunity cost of producing 25 more units of good X when 50 units of good X are being produced? `INDTo answer this question, increase the production of good X from 50 to 75 units. `IND`BLDQuestion:`BLD By how much does the production of good Y decrease? `IND Now, 75 units of good X are being produced. `IND`BLDQuestion:`BLD What is the opportunity cost of producing 25 more units of good X when 100 units of good X are being produced? `INDTo answer this question, increase the production of good X from 75 to 100 units. `IND`BLDQuestion:`BLD By how much does the production of good Y decrease? `IND `BLDGeneralization:`BLD As more good X is produced, does the opportunity cost of producing 25 more units increase, decrease, or remain the same? ` Problem 1 End """ let strLabEWBoxIntroSpecs :String = """ `` Lab Specs // Production function Good_X Good_Y // 0: Objective function full names X Y // 1: Objective function abbreviated names // The last is the name of the function itself; // e.g., U for utility. If _, there is no name 0.8 1.1 .1 1.0 // 2: Degrees of homogeneity 0.20 0.80 0.15 0.50 // 3: Cobb-douglas production exponents for constant returns to scale // Endowments Labor Capital // 4: Endowment full names L K // 5: Endowment abbreviated names 80 150 10 150 // 6: Labor endowments 80 120 10 120 // 7: Capital endowments // Rate of Substitution RTS // 8: Rate of substitution name // Production possibility curve 0 0 160 160 // 9: PP axis lengths // Trade related parameters 0.3 0.7 0.1 0.4 // 10: Cobb-Douglas utility function parameters 0.5 1.5 0.1 0.6 // 11: Trade price ratios Produce_more_X_and_less_good_Y Production_just_right Produce_less_X_and_more_good_Y // 12: Utility max advice array `` Prob Specs ` ****** Problem 0 Start Screen 1 - Edgeworth Box Introduction: Firm X's Allocation // 0: Title // Edgeworth box size Large // 1: Large or Small graphs Mouse // 2: Mouse or Slider // Visibility parameters L N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T F F F // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve F F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T F // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Understand how the Edgeworth box point illustrates the quantity of labor and capital allocated to Firm X.`BLK The economy's labor and capital endowments are reported in the upper right hand corner of the screen. How do the width and height of the Edgeworth box reflect the labor and capital endowments. Use your mouse to drag the point around the Edgeworth box. How much labor and capital is allocated to Firm X when the point lies at the middle of the Edgeworth box? upper right and corner? lower right hand corner? lower left hand corner? upper left hand corner? ` Problem 0 End ` ****** Problem 1 Start Screen 2 - Edgeworth Box Introduction: Firm Y's Allocation // 0: Title // Edgeworth box size Large // 1: Edgeworth box size: Large or Small Mouse // 2: Mouse or Slider // Visibility parameters L N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T F F F // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve F F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results F T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Understand how the Edgeworth box point illustrates the quantity of labor and capital allocated to Firm Y.`BLK Again, the economy's labor and capital endowments are reported in the upper right hand corner of the screen. Also, observe that Firm Y's origin is the upper right hand corner of the Edgeworth box. Use your mouse to drag the point around the Edgeworth box. How much labor and capital is allocated to Firm Y when the point lies at the middle of the Edgeworth box? upper right and corner? lower right hand corner? lower left hand corner? upper left hand corner? ` Problem 1 End ` ****** Problem 2 Start Screen 3 - Edgeworth Box Introduction: Allocations of Both Firms // 0: Title // Edgeworth box size Large // 1: Edgeworth box size: Large or Small Mouse // 2: Mouse or Slider // Visibility parameters L N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T F F F // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve F F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Understand how the Edgeworth box point illustrates the division of the economy's labor and capital endowments between Firm X and Firm Y.`BLK Use your mouse to drag the point around the Edgeworth box. How much labor and capital is allocated to Firm X and Firm Y when the point lies at the middle of the Edgeworth box? upper right and corner? lower right hand corner? lower left hand corner? upper left hand corner? ` Problem 2 End ` ****** Problem 3 Start Screen 4 - Edgeworth Box and the Contract Curve // 0: Title // Edgeworth box size Large // 1: Edgeworth box size: Large or Small Mouse // 2: Mouse or Slider // Visibility parameters L N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve F F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Show that the contract curve illustrates the efficient division of the economy's labor and capital endowments between Firm X and Firm Y.`BLK Note that more curves and information have been added to the screen. The red and blue isoquants of Firm X and Firm Y that pass through the Edgeworth box point now appear along with the black contract curve which connects the origins of the two firms. Also, the rates of technical substitution (RTSX and RTSY) for Firm X and Y are reported. Use the mouse to move the Edgeworth box point around the box. When the Edgeworth box point IS NOT ON the contract curve how are the rates of technical substitution (RTS's) of the two firms related? Is is possible to produce more of both goods? Is the division of the economy's labor and capital endowments divided efficiently between Firm X and Firm Y? When the Edgeworth box point IS ON the contract curve how are the rates of technical substitution (RTS's) of the two firms related? Is is possible to produce more of both goods? Is the division of the economy's labor and capital endowments divided efficiently between Firm X and Firm Y? Summary: When the economy operates on the contract curve: `IND`0x2022 The RTS of the firms are equal and production efficiency results. `0x2022 The RTS of the firms are unequal and production inefficiency results. ` Problem 3 End """ let strLabEWBoxPPCurveSpecs :String = """ `` Lab Specs // Production function Good_X Good_Y // 0: Objective function full names X Y // 1: Objective function abbreviated names // The last is the name of the function itself; // e.g., U for utility. If _, there is no name 0.8 1.1 .1 1.0 // 2: Degrees of homogeneity 0.20 0.80 0.15 0.50 // 3: Cobb-douglas production exponents for constant returns to scale // Endowments Labor Capital // 4: Endowment full names L K // 5: Endowment abbreviated names 80 150 10 150 // 6: Labor endowments 80 120 10 120 // 7: Capital endowments // Rate of Substitution RTS // 8: Rate of substitution name // Production possibility curve 0 0 160 160 // 9: PP axis lengths // Trade related parameters 0.3 0.7 0.1 0.4 // 10: Cobb-Douglas utility function parameters 0.5 1.5 0.1 0.6 // 11: Trade price ratios Produce_more_X_and_less_good_Y Production_just_right Produce_less_X_and_more_good_Y // 12: Utility max advice array `` Prob Specs ` ****** Problem 0 Start Screen 1 - Edgeworth Box and the Contract Curve // 0: Title // Edgeworth box size Small // 1: Edgeworth box size: Large or Small Mouse // 2: Mouse or Slider // Visibility parameters L N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve F F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Show that the contract curve illustrates the efficient division of the economy's labor and capital endowments between Firm X and Firm Y.`BLK Use the mouse to move the Edgeworth box point around the box. When the Edgeworth box point IS NOT ON the contract curve show that it IS POSSIBLE to produce more of both goods by moving toward the contract curve. How are the rates of technical substitution (RTS's) of the two firms related in this case? When the Edgeworth box point IS ON the contract curve show that it is NOT POSSIBLE to produce more of both goods; that is, when one firm produces more, the other produces less. How are the rates of technical substitution (RTS's) of the two firms related in this case? ` Problem 0 End ` ****** Problem 1 Start Screen 2 - Edgeworth Box and the Production Possibility Curve: The Connection // 0: Title // Edgeworth box size Small // 1: Edgeworth box size: Large or Small Mouse // 2: Mouse or Slider // Visibility parameters L N N N N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Illustrate the connection between the Edgeworth box and the production-possibility curve.`BLK A new graph has appeared to the left of the Edgeworth box: the production-possibility curve. It illustrates all the combinations of good X and good Y that are possible for the economy to produce. Use the mouse to move the Edgeworth box point around the box to see how the position of the Edgeworth box point affects the position of the production-possibility curve point. When the Edgeworth box point is ON the contract curve, is the production-possibility curve point ON or INSIDE the production-possibility curve? Alternatively, when the Edgeworth box point is NOT ON the contract curve, is the production-possibility curve point ON or INSIDE the production-possibility curve? ` Problem 1 End ` ****** Problem 2 Start Screen 3 - Contract and Production Possibility Curves: Importance of Returns to Scale // 0: Title // Edgeworth box size Small // 1: Edgeworth box size: Large or Small Slider // 2: Mouse or Slider // Visibility parameters L B L B N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Illustrate the effect that returns to scale, the degrees of homogeneity, on the shapes of the contract and production-possibility curves.`BLK Note that information describing each firm's production function appears in the upper right hand corner of the screen: the degrees of homogeneity and the Cobb-Douglas exponents. Also, in the two new scrollbars appear allowing us to respecify the degree of homogeneity of each firm's production function. Initially, the production function of each firm exhibits constant returns to scale; that is, the degrees of homogeneity for each firm equals 1.0. Note that both the contract curve and the production-possibility curve are straight lines. This is our benchmark case. Now, respecify the returns to scale, the degree of homogeneity (DoH's), for Firm X's production function from 1.0 to 0.8. Is the contract curve still a straight line? production-possibility curve straight, bowed in, or bowed out? Net, respecify the returns to scale, the degree of homogeneity (DoH's), for Firm Y's production function from 1.0 to 0.8. Is the contract curve still a straight line? production-possibility curve straight, bowed in, or bowed out? Summarize: Do the firms's degrees of freedom affect the contract curve still a straight line? If so, how? production-possibility curve? If so, how? ` Problem 2 End ` ****** Problem 3 Start Screen 4 - Contract and Production Possibility Curves: Importance of Factor Intensity // 0: Title // Edgeworth box size Small // 1: Edgeworth box size: Large or Small Slider // 2: Mouse or Slider // Visibility parameters L L B B N N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T F F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.5 0.5 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Illustrate the effect that factor intensity, the Cobb-Douglas coefficients, has on the contract and production-possibility curves.`BLK Note that two new scrollbars appear allowing us to respecify the Cobb-Douglas coefficients of each firm's production function. By default, the Cobb-Douglas coefficients for both Firm X and firm Y are identical: 0.5 for labor and 0.5 for capital. Let us call this scenario equal factor intensity. Note that both the contract curve and the production-possibility curve are straight lines. This is our benchmark case. First, focus on Firm X. Respecify its labor exponent to equal 0.2 and its capital exponent to 0.8. Firm X is now the capital intensive firm and Firm Y labor intensive. Is the contract curve still a straight line? production-possibility curve straight, bowed in, or bowed out? Second, respecify Firm Y's labor exponent to equal 0.2 and its capital exponent to 0.8. Since the two firms now have the same Cobb-Douglas exponents, we have equal factor intensity once again. How does this affect the contract curve? production-possibility curve? Last, respecify Firm Y's labor exponent to equal 0.8 and its capital exponent to 0.2. Firm X is now the capital intensive firm and Firm Y labor intensive. How does this affect the contract curve? production-possibility curve? Summarize: Does factor intensity affect the contract curve? production-possibility curve? ` Problem 3 End ` ****** Problem 4 Start Screen 5 - Production Possibility Curve: Utility Maximization without Trade // 0: Title // Edgeworth box size Small // 1: Edgeworth box size: Large or Small Slider // 2: Mouse or Slider // Visibility parameters L L L B L N // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T T F // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.2 0.8 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Find the utility maximizing combination of goods.`BLK The utility parameters of a representative consumer now appears on the screen. Also, the consumer's red indifference curve appears in the left graph along with the production-possibility curve. Using the scrollbar below the Edgeworth box move along the contract curve. Find the point on the production-possibility curve that maximizes utility. How are the rate of product transformation (RPT) and the marginal rate of substitution (MRS) related? ` Problem 4 End ` ****** Problem 5 Start Screen 6 - Production Possibility Curve: Utility Maximization with Trade // 0: Title // Edgeworth box size Small // 1: Edgeworth box size: Large or Small Slider // 2: Mouse or Slider // Visibility parameters L L L B L L // 3: Sliders: Endows DegsOfHom CDExps ContractCurve UtilExps PriceRatio T T T T // 4: EWBox FirmXIsoquant FirmYIsoquant ContractCurve T T T // 5: PPCurve IndifferenceCurve TradeCurve // Initialize mouse position T // 6: Set mouse location to initial position // Initial production function parameters 1.0 1.0 // 7: Degree of homogeneity parameters for good X and Y 0.2 0.8 // 8: Capital exponents for good X and Y // Report results T T // 9: Firm X results, Firm Y results ` Text Start // 10: Text `RED`BLDObjective:`BLD Illustrate how international trade can increase consumer welfare.`BLK This screen considers the possibility of international trade. The blue trade "budget" line illustrates the added options trade provides. The economy produces at the black point on the production possibilities curve. Trading one good for the other on the international market allows consumption to take place at any point on the blue trade line, however. Good X and Y are traded at the international price ratio (Int'l Px/Py). By default, the international price ratio equals .6. The table above the production-possibility curve graph illustrates the initial state of affairs: `IND`0x2022 Domestic production: 23.3 units of good X and 115.8 units of good Y. `0x2022 Trade: 106.5 units of good X imported and 63.9 units of good Y exported. `0x2022 Domestic consumption: 129.8 units of good X and 51.9 units of good Y. `IND Using the scrollbar below the Edgeworth box move along the contract curve. Find the point on the blue trade line that maximizes utility. Recall the utility maximizing solution from the previous screen when no trade occurred. Does trade increase consumer welfare? How are the international price ratio (Px/Py), the rate of production transformation (RPT), and the marginal rate of substitution (MRS) related? ` Problem 5 End """ }