Suppose the wage ratio is w/w = 2. Hours needed per unit Wheat (tonnes) Toys (1000's)...

 

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Suppose the wage ratio is w/w = 2. Hours needed per unit Wheat (tonnes) Toys (1000's) Australia Foreign 20 6 60 8 a) Calculate how many hours an AUS worker would have to work to afford a unit of wheat and a unit of toys without trade. b) Calculate how many hours an AUS worker would have to work to afford a unit of wheat and a unit of toys with trade. c) Can trade improve the workers standard of living? Suppose the wage ratio is w/w = 2. Hours needed per unit Wheat (tonnes) Toys (1000's) Australia Foreign 20 6 60 8 a) Calculate how many hours an AUS worker would have to work to afford a unit of wheat and a unit of toys without trade. b) Calculate how many hours an AUS worker would have to work to afford a unit of wheat and a unit of toys with trade. c) Can trade improve the workers standard of living?

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a In Australia a worker would need to work 20 hours to afford a unit of wheat and 6 hours to afford ... View the full answer