n tos (the uniti possible combinations of prodtuction for Australia and N tons the unit really doesn't matter) The Ricardo model and New Zealand, per year, Bauxite (aluminum ore) 1000 21) These are the possible 200 Australia 500 OR New Zcaland 600 Bauxite? Yes OR No a) Which country\" has the absolute advantage in wooi one of those? b) Does either country compara Ricardo's theoryz ins from trade in which both countries would benefit, according to Ricardo's theory? * You can use A or NZ rather than spelli have a comparative advantage in one of those? Yes OR No ng out the whole country name 22 These are the possible combinations of production for Ireland and Norway, per year, in tons (the unit really doesn't matter) 1000 400 Norway Ireland OR OR 500 200 salmon? a) Which country has the absolute advantage in oil? b) Does either country have a comparative advantage in one of those? You can use I or N rather than spelling out the whole country name Yes OR No 23) Give one reason why, even in theory, the Ricardo model is wrong about free trade always benefitting the countries involved in the trade. Multiplier effect 24) We know that wealthier households spend a smaller portion of their income, investing or saving the rest. Which of these government injections into the economy would boost aggregate demand more over the next two years? a) a S1 Billion decrease in luxury taxes and b)a $1 Billion increase in federal aid to public taxes on millionaires' estates education 25) In either case, would the two-year increase in aggregate demand be more than $1 billion, less than $1 billion, or exactly $1 billion?