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Country B is a small country that produces an agricultural good (maize) and a manufactured good (gizmos). It takes 12 hours to produce a bushel
Country B is a small country that produces an agricultural good (maize) and a manufactured good (gizmos). It takes 12 hours to produce a bushel of maize and 4 hours to produce a gizmo. The wage in Country B is $5 per hour. Initially, Country B does not trade with the ROW. Country B now starts to trade with the ROW. The price of a bushel of maize in the ROW is $48 and the price of a gizmo is $24
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
