question archive An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes
An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes
Subject:EconomicsPrice: Bought3
An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X-axis and tobacco on the Y-axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). **You can, if you'd like, assume that both workers can trade until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes.
