Suppose that country A has 240 workers, where production of good X requires 3 workers and...

Transcribed Image Text:

Suppose that country A has 240 workers, where production of good X requires 3 workers and production of good Y requires 4 workers. In contrast, country B has 450 workers, where the unit labour requirements for X and Y are 5 and 9, respectively. a. Plot the two countries' production possibility frontiers. b. Which country has the absolute advantage in production? C. What are the relative prices of the goods in autarky in each country? d. Which country exports which good? Suppose that country A has 240 workers, where production of good X requires 3 workers and production of good Y requires 4 workers. In contrast, country B has 450 workers, where the unit labour requirements for X and Y are 5 and 9, respectively. a. Plot the two countries' production possibility frontiers. b. Which country has the absolute advantage in production? C. What are the relative prices of the goods in autarky in each country? d. Which country exports which good?

Answer rating: 100% (QA)

The detailed ... View the full answer