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The figure to the right uses a box diagram to depict the allocation of resources for a country producing just two goods: cigars and sugar.
The figure to the right uses a box diagram to depict the allocation of resources for a country producing just two goods: cigars and sugar. The width of the box represents the economy's total supply of labor (L), in millions of hours; the height of the box its total supply of land (T), in millions of acres. Part 2 The initial allocation of resources in this economy, determined by the intersection of the resource-allocation lines, has A. cigars taking the majority of labor and sugar the majority of land. B. the two industries equally sharing each resource. C. sugar production taking the majority of both resources. D. cigar production taking the majority of both resources
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