Krugland is a small country that produces an agricultural good (corn) and a manufactured good (widgets)....

 

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Krugland is a small country that produces an agricultural good (corn) and a manufactured good (widgets). It takes 3 hours to produce a bushel of corn and 6 hours to produce a widget. Krugland workers work 60M hours per year. a. b. C. Krugland opens to trade with the ROW. The price of a bushel of corn in the ROW is 0.8 widgets. Which good will Krugland export? Briefly explain. Add Krugland's trade line to your graph in part (a). If Krugland now consumes 12M widgets, what are Krugland's imports and exports? Give numerical values. d. e. f. g. Draw Krugland's yearly ppc. (Put corn on the horizontal axis.) In autarky, Krugland produces (and consumes) 6M widgets. How much labor is allocated to widget production and how much to corn production? Show your calculations. In autarky, what is the price of a bushel of corn (in terms of widgets)? h. (2 points each.) Use the information given above to add points to your graph in part (a) representing (i) (ii) (iii) Krugland's production and consumption under autarky. Krugland's production with free trade. Krugland's consumption with free trade. Does Krugland or the ROW gain more from trade? Briefly explain. Krugland is a small country that produces an agricultural good (corn) and a manufactured good (widgets). It takes 3 hours to produce a bushel of corn and 6 hours to produce a widget. Krugland workers work 60M hours per year. a. b. C. Krugland opens to trade with the ROW. The price of a bushel of corn in the ROW is 0.8 widgets. Which good will Krugland export? Briefly explain. Add Krugland's trade line to your graph in part (a). If Krugland now consumes 12M widgets, what are Krugland's imports and exports? Give numerical values. d. e. f. g. Draw Krugland's yearly ppc. (Put corn on the horizontal axis.) In autarky, Krugland produces (and consumes) 6M widgets. How much labor is allocated to widget production and how much to corn production? Show your calculations. In autarky, what is the price of a bushel of corn (in terms of widgets)? h. (2 points each.) Use the information given above to add points to your graph in part (a) representing (i) (ii) (iii) Krugland's production and consumption under autarky. Krugland's production with free trade. Krugland's consumption with free trade. Does Krugland or the ROW gain more from trade? Briefly explain.

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a Yearly PPC for Krugland Let C be the quantity of corn and W be the quantity of widgets The opportu... View the full answer