Use the information in Exercise 5 plus the following additional data to graph As trade triangle: world

Question:

Use the information in Exercise 5 plus the following additional data to graph A’s trade triangle: world relative price = 3; A’s imports = 3,000; A’s exports = ?

data from exercises 5

Suppose that there are 40,000 hours of labor available in country A. Ten hours of labor are required to produce 1 unit of S, while eight hours are required to produce 1 unit of T. Find the shape and dimensions of A’s PPF.

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Related Book For  book-img-for-question

International Economics

ISBN: 9780321783868

9th Edition

Authors: Steven Husted , Michael Melvin

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