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One billion hours of labor are available for making products in Mandovia, and 2 billion hours of labor are available for making products in Ducennia. In a no-trade world, let’s assume that half the labor in each country gets used to make each product. Calculate the output of rotids and taurons, rounding to one decimal place.

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Answer:

Mandovia

Rotid

Mandovia total labor hours is 1 billion which is to be divided equally to make one product so 500 million hours per product. It takes 50 hours to make one rotid so with 500 million;

= 500,000,000/50

= 10,000,000 rotids

Taurons

= 500,000,000/100

= 5,000,000 taurons

Ducennia

Rotids

Ducennia total labor hours is 2 billion which is to be divided equally to make one product so 1 billion hours per product. It takes 150 hours to make one rotid so with 1 billion hours will be;

= 1,000,000,000/150

= 6,666,666.7

= 6.7 million rotids

Taurons

= 1,000,000,000/20

= 50,000,000 taurons

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