Without any trade-ernamia will produce garments of clothing

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Reference no: EM13733409

Consider two neighbouring island countries called Bertland and Ernamia. They each have 4 million labor hours available per week that they can use to produce wheat, clothing, or a combination of both. The table below shows the amount of wheat or clothing that can be produced using one hour of labor. Wheat (Bushels) Clothing (Garments) Bertland 4 5 Ernamia 6 3 Initially, before these countries begin trading goods, Bertland uses 1 million hours of labor per week to produce clothing and 3 million hours per week to produce wheat, while Ernamia uses 3 million hours of labor per week to produce clothing and 1 million hours per week to produce wheat. Assume there are no other countries willing to trade goods, so when there is no trade between these two countries, each country consumes the amount of wheat and clothing it produces. 3.3.

Without any trade, Ernamia will produce (and consume) ___ garments of clothing and ____ bushels of wheat in a week.

(Hint: Remember your answer to this question because you will use it in some of the questions that follow.)

A. 12 million; 20 million

B. 3 million; 6 million

C. 5 million; 12 million

D. 9 million; 6 million

Reference no: EM13733409

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