Question
Answer of the following questions True, False or Uncertain and explain your answer. If a question is true or false depending on some values of
Answer of the following questions True, False or Uncertain and explain your answer. If a question is true or false depending on some values of a parameter, explain. If an exogenous price or quantity is not explicitly indicated as changing, you should take it as unchanged. Points are indicated in parentheses. Each question is worth 10 points
If the home country uses 10 units of labour to produce a unit of good 1 and 5 units of labour to produce a unit of good 2; and the foreign country uses 5 units of labour to produce a unit of good 1 and 10 units of labour to produce a unit of good 2; and both countries have 100 units of labour, which country has the comparative advantage in good 1, and how much is the gain to production of each good by producing according to comparative advantage instead of producing according to comparative "disadvantage".
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