N3

The following table defines forms relevant to the basic Foxcardian model of one factor and to goods Quantity of wine (orlions) number of labor hours needed to produce a unit of chocolate in Home; = umber of labor hours needed to produce a unit of wing in Home, = number of labor hours needed to produce a unit of chocolate in Foreign, ALW number of labor hours needed to produce n unit of wine in Foreign Po = the price per pound of chocolate on world Ply = the price per gallon of wine on world PPF Which of the following conditions will induce Home to specifice in chocolate? OA. (P /PW) (Law) Quantity of chocolate (pounds) OC. P. SPW OD PCPPE Suppose Home wore to trade with Foreign at the relative price of (PR,) = 05 Using the wise drawing foot, add the consumption possibilites boober for Home to its production possibilities Wonder Property Mabel Bus ling