Question
1. (Ricardian Model, Chapter 2) Consider a Ricardian model of comparative advantage. There are two countries, China and the US. Each country can produce two
1. (Ricardian Model, Chapter 2) Consider a Ricardian model of comparative advantage. There are two countries, China and the US. Each country can produce two goods, shoes (S) and food (F). Assume China has 600 workers and the US has 200 workers. Labor productivity in each country is: (See attached image 1)
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Principles of Economics
Authors: Gregory Mankiw
7th edition
128516587X, 978-1285165875
