Current factor cost of cloth is produced

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Reference no: EM139115

Q. Assume which at current factor cost s cloth is produced using 40 hours of labor for each acre of land, and food is produced using only 8 hours of labor per acre of land.

a. Assume which the economy's total resources are 320 hours of labor and 20 acres of land. Use a diagram and some algebra to find out the allocation of resources. (It doesn't necessarily have to be to scale.)

b. Say there is a bumper crops in births for some astrological reason, and the labor force increases 10% from 320 hours to 352 hours. Amend the diagram and use similar algebra to figure out Illustrate what happens again.

Reference no: EM139115

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