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 until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes. **

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 until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 11SQ

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