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Let there be two countries: Netherland (N) and Switzerland (5) producing and consuming two 6 commodities: Manufactured goods (M) and Services (S)

Finance Mar 05, 2022

Let there be two countries: Netherland (N) and Switzerland (5) producing and consuming two 6 commodities: Manufactured goods (M) and Services (S). Suppose 180 units of labour are available in each country and each labour contributes in the following manner in the two product industries as mentioned below, separately for two nations. N S M (Units labour) 9 3 S (Units labour) 6 6 Given the information: a) Draw the PPC for both countries and comment on it. b) Whether trade is possible between the N and the S2 Justify your answer.

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