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24-05-2023
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RICARDIAN MODEL (PPF) Consider the following case of two countries: France and Italy. Each country produces Cheese and Wine. Labour endowment in both countries is 1,000 units of labour-hours. The unit-labour requirements to produce cheese and wine in each country are the following: Labour-hours to produce France Italy Cheese (1 kg) 6 5 M Wine (1 It) 8 To determine the Production Possibility Frontier in each country we need to determine the maximum possible productions of each product given the technologies and resources available. The maximum quantities of cheese and wine that could be produced in Italy are Select one: O ii. Oiii. O iv. 250 kgs of cheese and 200 Its of wine. 167 kgs of cheese and 125 Its of wine. 400 kgs of cheese and 500 Its of wine. 200 kgs of cheese and 250 Its of wine.

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