4. From the table below, explain the absolute advantage and comparative advantage. What should be the pattern of trade in this situation? People . Cloth Wine required England 100 120 Portugal 90 80 5. What are the assumptions and limitations of the Ricardian trade model? Why are those assumptions questionable today? 6. Read the excerpts this week from David Ricardo, who narrates the hypothetical story of international trade between England and Portugal. At the end of the essay, Ricardo explains why capitalists will not relocate all of their production to a country with absolute advantage. What are his reasons? What are the similarities between Ricardo's reason and Adam Smith's reason for 'invisible hand'? Do you think his reasons are still valid during these days? Why or why not? 1. What are Poor Laws? What do Malthus and Ricardo think about the laws? 2. What is Say's law? Why's it important to Classical economics? 3. What is the Malthusian law of population? How's the concept related to the so-called 'dismal science'? What did Malthus miss about his theory of population? 4. Explain the theory of subsistence wages based on Malthus's population theory. (you can draw the graph here.) births, deaths per capita real wage Malthusian equilibrium 3. How is Malthus's population theory related to the Population Bomb thesis? How was the thesis right and wrong afterward? 3. What is David Ricardo's comparative advantage? How's it related to Smith's division of labor? How did he use comparative advantage to argue against the Corn law? 7. Explain Ricardo's theory of rent. Why does rent exist? Explain the situation below. 100 Bushels A B Extensive margin of land 8. Ricardo is one of the first political economists who theorized how functional income distribution has evolved during economic growth. Please summarize what happens to wages, profit, and rents during economic growth. Briefly explain the stationary state according to David Ricardo. Why is this stage undesirable? How's the Malthusian theory of population related here? What are the main implications? 9. Summarize the Corn Laws debate between Ricardo and Malthus. How did Ricardo use his theory of income distribution to argue against the Corn Laws