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Posts Tagged ‘middle-earth’

Seen on an International Political Economy quiz:

The world of Middle-Earth has become largely peaceful, and international trade is growing. The Shire, Gondor, and Mordor are three countries in Middle-Earth. The Shire is abundant in land and scarce in labor and capital; Gondor is abundant in labor and capital and scarce in land; Mordor is abundant in labor and scarce in land and capital. Some of the products these countries trade include Longbottom leaf (produced intensively with land), mithril chain-mail armor (produced intensively with labor and capital), and raw iron ore (produced intensively with labor).

Questions:

  1. If you had to guess, which product(s) do you think the Shire imports, and which product(s) do they export?
  2. What would you predict to happen to the prices of Longbottom leaf and mithril chain-mail armor in Gondor after Gondor opens up to trade with the outside world?
  3. In Mordor, owners of which factor(s) of production tend to support free trade in the long run, and which factor owners tend to support protection instead?

First commenter to get all three answers right wins Commenter of the Day with a nice, big, fancy, front-page post and everything.

UPDATE FROM EDITOR: See here for the Answers and Winner.

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