Suppose there are 20,000 hours of labor available in Canada

| November 24, 2016

Suppose there are 20,000 hours of labor available in Canada. Production occurs under constant opportunity cost. Five hours of labor are required to produce 1 box of bacon, while four hours are required to produce 1 gallon of maple syrup. Suppose world relative price for a box of bacon = 2 gallons of maple syrup.

Draw the PPF and explain what good Canada exports.
Further, suppose that Canada imports = 2000 units of the imported good. Draw the TOT line and Canada’s trade triangle on the previous graph. To complete the trade triangle you need to calculate how much Canada exports?

Get a 30 % discount on an order above $ 50
Use the following coupon code:
COCONUT
Order your essay today and save 30% with the discount code: COCONUTOrder Now
Positive SSL