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Assume that England and Spain can switch between producing cheese and producing bread at a constant  Labor Hours Needed to Make 1 Unit ofNumber of Units Produced in 24 HoursCheeseBreadCheeseBreadEngland23128Spain3684 Assume that England and Spain each has 24 labor hours available. If each country divides its time equally between the production of cheese and bread, then what will be the total production of Cheese and Bread?Check to see if the following combination of Chease and Bread could be produced in England.6 units of cheese and 4 units of bread.8 units of cheese and 3 units of bread.

Question
  • Assume that England and Spain can switch between producing cheese and producing bread at a constant

 

 

Labor Hours Needed to Make 1 Unit of

Number of Units Produced in 24 Hours

Cheese

Bread

Cheese

Bread

England

2

3

12

8

Spain

3

6

8

4

 

  1. Assume that England and Spain each has 24 labor hours available. If each country divides its time equally between the production of cheese and bread, then what will be the total production of Cheese and Bread?
  2. Check to see if the following combination of Chease and Bread could be produced in England.
  3. 6 units of cheese and 4 units of bread.
  4. 8 units of cheese and 3 units of bread.
check_circleAnswer
Step 1

(1) Production possibility curve is a curve that represents a different combination of goods that can be produced in the economy within the given resources and technology during a specific period. From the provided information, PPC of the two countries is shown below where the AB curve is the PPC of England and the CD curve is the PPC of Spain.

A
PPC of Englandl
4
PPC ob
Spain
12
Chees
Bread
help_outline

Image Transcriptionclose

A PPC of Englandl 4 PPC ob Spain 12 Chees Bread

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Step 2

Provided that each country divides their time equally in the production of both the good that is 12 labor hours for each good. Thus the production of cheese and bread in England will be 4 units and 6 units respectively while the production of cheese and bread in Spain will be 2 units and 4 units respectively.

No. of labor hours used in production
Production of good No. of labor hours used to produce one unit
12
=4 units
Production of cheese in England-
12
--6 units
2
Production of bread in England-
12
Production of cheese in Spain=-2 units
6
12
Production of bread in Spain==4 units
3
help_outline

Image Transcriptionclose

No. of labor hours used in production Production of good No. of labor hours used to produce one unit 12 =4 units Production of cheese in England- 12 --6 units 2 Production of bread in England- 12 Production of cheese in Spain=-2 units 6 12 Production of bread in Spain==4 units 3

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Step 3

(2) To see whether a combination of goods can be produced in the economy, it should be the case that either t...

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