Microeconomics

123 . As a result of the change in applied science , 20 jillion jobs were lost in Hotdog manufacturing . To constrain 40 million hot dogs per day at a rate of 1 person-day per andiron equates to 40 million endureers . This is a decrease of 20 million from the previous situation wherein 60 million workers are compulsioned to produce 30 million hot dogs per day at 2 person-days worth of work per hotdogThe laid off hotdog employees are now work in bun manufacturing . Due to the increase in hotdog manufacturing , loafer also increased in yieldion . From 60 million workers needed to produce 30 million buns at 2 person-days per bun , the economy is now producing 40 million buns using 80 million workers . clear , the 20 million workers lost in hotdog manufacturing were captive by the bun manufacturers4 . Labor saving technology in this case has analogous effects with importing goods .

This is because when goods are import from overseas the local economy does not anymore need to manufacture those same goods With the need to manufacture these goods gone , the intend labor force for the imported goods butt then be moved to other industriesBy importing , the PPF leave also fill out outwards as in the example with the hotdogs and buns . This is because the importations will effectively pseudo-increase the labor force of the local economy . We can imagine that the goods circulating in the local economy is the product of all the local labor force plus the...If you pauperism to get a full essay, order it on our website: Ordercustompaper.com

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