Question
Utopia's residents are endowed with 100 labor units and 180 capital units. Idealand's residents are endowed with 90 labor units and 60 capital units. Which
Utopia's residents are endowed with 100 labor units and 180 capital units. Idealand's residents are endowed with 90 labor units and 60 capital units. Which nation is relatively labor abundant and which is relatively capital abundant? Suppose that sandwiches require 2 labor unit and 0.5 capital units to produce, while bicycles require 1 labor units and 1.5 capital units. Based on this information, which of the two goods is relatively capital intensive in its production process, and which is relatively labor intensive?
Draw PPFs for both countries (put sandwiches on x-axis). Please show your calculations.
I WOULD ONLY LIKE A RESPONSE TO THE DRAWING OF PPFs QUESTION PLEASE.
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