Penyeand C = 100 = 0 15 mic R Burttra " Rice output per Cloth output per 75 unit of inputs unit of inputs 75 0: 125 100 Burma 150 Rest of the world "You may make several Ricardian assumptions: these are the only R two commodities, there are constant ratios of input to output whatew the levels of output for rice and cloth, and competition prevails in all markets. (a) Does Burma have an absolute advantage in product rice? Cloth? (b) Does Burma have a comp omparative advantage in producing rice? Cloth? (c) If no international trade were allowed what price ratio would prevail between rice and cloth within Burma (d) If free international trade is opened up. what are the limits of the international "terms of trade" (the international price ratio between rice and cloth)? 3. To test your understanding of how the supply curve or Soopportunity-cost curve for one good is derived from the production possibilities curve, sketch the U.S. supply curve for wheat that derives from Figure 2.4. DU BOOK SHOP YOUR TRUSTED BOOK SHOP 01712-841622 All kinds of BBA, MBA Mobile : 01643-571114 Engineering, Computer Medical, Banking Diploma TOEFL, IELTS, GMAT, GRE 7 No. Goll, Islamia Market Nilkhet, Dhaka. Wholesaler & Publisher DU BOOK SHOP JIGGICE MORES EGG aisle Bureone: Rice - 29 - 0.125 ) = part: cloth = (72 - 0. 124)=