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5. The table below presents the labor productivity of the US and China in three products, apparel, textile, and wheat, United States China Absolute Advantage
5. The table below presents the labor productivity of the US and China in three products, apparel, textile, and wheat, United States China Absolute Advantage Soles/Employee Safes/Employee U.$./China Ratio Apparel $56,000 $23,000 2.4 Textiles $165,000 $27,000 6.1 Busheis/ Worker Busheis/ Worker U.5./Chino Ratio Wheat 12,260 300 41 Comparative Advantage Wheat/apparel ratio 0.22 0.01 Wheat/textile ratio 0.07 0.01 (1) Please tell us on which product/products the US has absolute advantage, on which product/products the US has comparative advantage? (2) If you are an economist with convenient access to data, how will you design an empirical test for the Ricardian model
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