Exercise 05: Theory of Uneven Development
1)
World income and distribution before trade
| Country A | Country B | |||||
| Product | Man-days | Output per man-day | Total Output | Man-days | Output per man-day | Total Output |
| Wheat | 200 | 4 | ? | ? | 4 | 800 |
| Watches | 200 | ? | 800 | ? | 3 | 600 |
Which country is less efficient at producing watches? __________
(2)
World income and distribution after trade
| Country A | Country B | |||||
| Product | Man-days | Output per man-day | Total Output | Man-days | Output per man-day | Total Output |
| Wheat | 100 | ? | 450 | 300 | ? | 1050 |
| Watches | 300 | ? | 1350 | 100 | ? | 200 |
What happened to the wheat-producing efficiency of country A after it started to trade? __________
What happened to the wheat-producing efficiency of country B after it started to trade? __________
How do you explain this? __________
What happened to the watch-producing efficiency of country A after it started to trade? __________
What happened to the watch-producing efficiency of country B after it started to trade? __________
How do you explain this? __________