Consider the Information in the Following Table (A) Assuming Free Movement of Labor, and Wine Is the c

question 41

Essay

Consider the information in the following table.
$$\begin{array} { l c c } \hline & \text { England } & \text { Portugal } \\\hline \text { Number of workers } & 25 & 200 \\\text { Bottles of wine per worker } & 40 & 50 \\\text { Wheels of cheese per worker } & 4 & 1 \\\hline\end{array}$$
(a) Assuming free movement of labor, and wine is the numéraire good, to which country (host country) would labor migrate? What would the wage be in that country?

(b) Assuming the host country dedicates half its income to the production of each good, what would total production be? What is the wage of each worker? What would consumption per worker be for each good?

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Definitions:

Waterlogging

The saturation of soil with water, usually due to excessive rain or irrigation, which can lead to reduced oxygen availability for plants.

Irrigation

The artificial application of water to land to assist in the growing of crops and vegetation.

Soil PH

A measure of the acidity or alkalinity of soil, significantly affecting nutrient availability, microbial activity, and plant growth.

Monocultures

The agricultural practice of growing a single crop, plant, or livestock species in a field or farming system at a time.