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According to the figure to the right, Home specializes in Relative wage rate, w/w 10- O A. fur and gin O B. pie, ink, and jute. O C. All five of the goods. O D. None of the goods. Suppose that Homes labor force increases relative to the Foreign labor force. A plausible consequence of this change is Fur RS Gin Pie Ink O A. an increase in the range of goods produced by Home. O B. an increase in the range of goods produced by both. O C. an increase in the range of goods produced by Foreign. O D. a decrease in the range of goods produced by Home. Jute RD 5 6 7 89 10 11 12 Relative quantity of labor, L/L

Both questions please!

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Answer #1

Solution

1) :- the correct answer is (A)

Home specialises in Fur and Gin

Because these two are requires less than the relative quantity of labour

2) :- The correct answer is (A)

That is increase in the range of goods produced by home

Because then they can also produced other items that is Pie Ink Jute by labours increased quantity

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