The Specific Factors Model The full employment of labor condition requires that the economy-wide supply of labor must equal the labor employed in food plus the labor employed in manufactures t Le We can use these equations and derive the production possibilities frontier of the economy Copyright C 2003 Pearson Education, Inc Slide 3-7Copyright © 2003 Pearson Education, Inc. Slide 3-7 • The full employment of labor condition requires that the economy-wide supply of labor must equal the labor employed in food plus the labor employed in manufactures: LM + LF = L (3-3) • We can use these equations and derive the production possibilities frontier of the economy. The Specific Factors Model