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1a. Assume the Ricardian model with two goods, A and B.Assume the home country has a comparative advantage in good A.Trade will A.increase the real
1a. Assume the Ricardian model with two goods, A and B.Assume the home country has a comparative advantage in good A.Trade will
A.increase the real wage in terms of good A but not good B
B.increase the real wage in terms of good B but not good A
C.increase the real wage in terms of both goods
D.have no effect on the real wage
1b. Trade in the Ricardian model will cause
A.relative prices in the two countries to equalize
B.real wages in the two country to equalize
C.All of the above
D.None of the above
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