Assume That Two Countries (Home and Foreign) Each Produce Two

question 77

Multiple Choice

Assume that two countries (Home and Foreign) each produce two goods (corn and wheat) under constant cost production. Home produces 0.5 ton of corn or 1 ton of wheat with a day of labor. Without trade (in autarky) , Home's daily production is 20 tons of wheat and 10 tons of corn. How large is Home's labor force?

• A) 50 workers
• B) 40 workers
• C) 30 workers
• D) 20 workers

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