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It requires 5 hours of labor to produce a ton of Steel in Italy and 3 hours in China and it requires 20 hours of labor to produce a car in Italy and 15 hours in China Construct a production

It requires 5 hours of labor to produce a ton of Steel in Italy and 3 hours in China, and it requires 20 hours of labor to produce a car in Italy and 15 hours in China. 1. Construct a production possibilities curve for each country. 2. If Italy and China were the only countries involved in trade, what would be the pattern of trade between them? Assume 100 hours of labor are available in each country.

Apr 02 2020 View more View Less

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