Consider the information in the following table:
(a)Assuming free movement of labor,and wine is the numéraire good,which country (host country)would labor migrate to? 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?

Question

Consider the information in the following table:  
(a)Assuming free movement of labor,and wine is the numéraire good,which country (host country)would labor migrate to? 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?

Quizplus · Accepted Answer

The Answer of Consider the information in the following table:  
(a)Assuming free movement of labor,and wine is the numéraire good,which country (host country)would labor migrate to? 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?

Consider the Information in the Following Table