ECON 3110H Midterm: ECON 311OH midterm_10_311
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Instructions: answer two (2) of the following three questions. Questions are of equal value and parts of questions are of equal value. Be sure to fully label any diagram provided, including labeling axes, etc: the table below shows the labour input (hr) required per unit of output of cookies and milk, and the labour endowments of two countries (in hr). Redraw the diagram in your answer booklet, label the diagram, comment on the production mix in each country, and identify the equilibrium on the world ppf from part b. above. Econ 3110h - international trade: with the new labour endowment of 40 hr in ctry b and assuming rd has not changed, illustrate a new, fully-labeled rs-rd diagram, again in terms of pcookies. Comment on each country"s production mix resulting from the equi- pmilk librium in the new rs-rd diagram. Country a is land abundant and country b is labour abundant.
