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Question: product home f foreign alx 05 at y05 lx...

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Product Home F Foreign aLX = 0.5 at y-0.5 LX air = 2 Table 1: Labor hours per unit of outputs Bach oi these two economies is endowed with 500 labor hours (ie, L = L*-500).has higher relative labor 3. Relative to labor productivity in product Y, productivity in product X A) Home B) Foreign C) Neither Home nor Foreign D) undertermined 4. Which of the following represents Homes production-possibility frontier 650 500 A) B) 1000 850 1000 C) D) none of the above 500 5. PPP represents an economys maximum productive capacity determined by its economic fundamentals. So Foreigns PPF can be formulated by the equation of D) none of the above

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