In the Ricardian framework with two countries, which of the following statementsalwaysapplies?

A. A country has comparative advantage in one good

B. An exporting country's supply curve intersects the downward sloping portion of the importing country's demand curve

C. Compared to autarky, no country is worse off

D. The world price is different from the two autarky prices

Consider a Ricardian framework with two countries, Sweden and Norway, and two products, fish and oil. Norway has comparative advantage in oil throughout this question.

Which of the following canneverexplain an improvement in Sweden's terms of trade?

A. An increase in Sweden's productivity in the fish industry

B. An increase in Sweden's demand for oil

C. An increase in Norway's productivity in the oil industry

D. A drop in Norway's demand for fish

Which condition does not have to hold in the trade equilibrium of a Ricardian model

A. Real wages are equalized in two countries

B. Costs of imported goods are equal to costs of exported goods for both countries

C. Export from one country is equal to import to another

D. World price lies between autarky prices in both countries

4.

The table below shows the marginal product of labour in two different products (shoes and toys) in two different countries (Vietnam and Indonesia). Shoes Toys Vietnam 24 12 Indonesia 9 6 In the trade equilibrium, the real wage, in terms of toys, for Vietnamese workers is The table below shows the marginal product of labour in two different products (shoes and toys) in two different countries (Vietnam and Indonesia). Shoes Toys Vietnam Indonesia World relative price of toys will be