1. Consider the Ricardian Trade Model. Assume two countries C and D. There has just occurred an increase

Assume that trade currently exists between countries A and B with country A exporting good Y and importing good X. Suppose now the consumption possibility frontier (CPF) for A pivots outwards away from the A's PPF and the CPF for B does the opposite. From this information we can conclude that:

a. The relative price of X increased. b. the real wage rate in terms of good X increased in country A. c. the ratio of nominal wages (W_B/W_A) increased. d. the relative marginal cost of producing X in B increased. e. both countries will be better off as a result of this shifts in the CPF curves. f. if you think two of the above are correct and three of the above are not correct, choose this option. g. if you think three of the above are correct and two of the above are not correct, choose this option h. if you think all of the above are correct, choose this option. i. if you think none of the above are correct, choose this option.