INTERNATIONAL TRADE 1.Graph the production possibility frontier. What will happen if more labor is employed? QUESTIONAn economy can produce leather using labor and capital and wheat using labor and land. The total supplyof labor is 50 units. Given the supply of capital, the outputs of the two goods depend on labor input asfollows:Table 1: TableLabor for LeatherLeather Output Labor for WheatWheat Output2719.81038.51031.21547.31542.320562052.12565.72560.63074.530693582.43577.488.294.1404085.4454593.95010050100

Production possibilities frontiers are used to represent the trade-off that occurs between the…

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1.Graph the production possibility frontier. What will happen if more labor is employed?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

INTERNATIONAL TRADE

1.Graph the production possibility frontier. What will happen if more labor is employed?

QUESTION
An economy can produce leather using labor and capital and wheat using labor and land. The total supply
of labor is 50 units. Given the supply of capital, the outputs of the two goods depend on labor input as
follows:
Table 1: Table
Labor for Leather
Leather Output Labor for Wheat
Wheat Output
27
19.8
10
38.5
10
31.2
15
47.3
15
42.3
20
56
20
52.1
25
65.7
25
60.6
30
74.5
30
69
35
82.4
35
77.4
88.2
94.1
40
40
85.4
45
45
93.9
50
100
50
100

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