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Assume that the price of a car in the U.S. is $18,000; a single U.S. car worker can produce 3 cars per year; a single
Assume that the price of a car in the U.S. is $18,000; a single U.S. car worker can produce 3 cars per year; a single Argentinian car worker can produce 1 car per year; and a single U.S. or Argentinian barber can give 3,000 haircuts per year. Cars are traded, haircuts are non-traded, and the assumptions of Balassa-Samuelson hold. What is the price of a haircut (in dollars) in Argentina? (a) $3 (b) $6 (c) $10 (d) $12
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