Question
There are 100 workers in the country of North Zambezi and 100 workers in the country of South Zambezi. Workers in either country work 50
There are 100 workers in the country of North Zambezi and 100 workers in the country of South Zambezi. Workers in either country work 50 hours per week and they can spend their time either producing food or producing clothing. It takes a North Zambezi worker 20 hours to produce a unit of food and 5 hours to produce a unit of clothing. It takes a South Zambezi worker 40 hours to produce a unit of food and 5 hours to produce a unit of clothing. A. Show using empirical evidence which country has an absolute advantage in the production of: I. Food (2 Marks) II. Clothing. (2 Marks) B. Show using empirical evidence which country has a comparative advantage in the production of: I. Food (3 Marks) II. Clothing. (3 Marks) C. Draw the Production Possibility Curves (PPC) for: I. Each country without trade per week (2 Marks) II. The world without trade per week (2 Marks) III. The world with trade per week
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started