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a. (3 marks) Consider the following representation of the Ricardian Model. Two countries, Australia and Cambodia, both produce two products - rice and paper. Total

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a. (3 marks) Consider the following representation of the Ricardian Model. Two countries, Australia and Cambodia, both produce two products - rice and paper. Total labour supply in Australia is 300 and the total labour supply in Cambodia is 300. The table provides the marginal product of labour () to produce cars and paper in each country. Australia Cambodia 15 6 Rice 4 Paper 2 d. (3 marks) Consumers in a large economy benefit from an import tariff because the tariff improves the country's terms of trade. True or False? Explain

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