Question

Suppose Germany and France each produce only two goods, guns and butter. Both are produced using labor alone. Assuming both countries are at full employment, you are given the following information: Germany: 10 units of labor required to produce 1 gun 5 units of labor required to produce 1 pound of butter Total labor force: 1,000,000 units France: 15 units of labor required to produce 1 gun 10 units of labor required to produce 1 pound of butter Total labor force: 750,000 units a. Draw the production possibility frontiers for each country in the absence of trade.

Answer 1

Answer:

In this situation, could make better than becuz France makes equal production to Germany with less number of labour force.