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Rice output per Cloth output per unit of inputs 75 0. 125 prill of inputs 100 Burma 150 150 Rest of the world You may
Rice output per Cloth output per unit of inputs 75 0. 125 prill of inputs 100 Burma 150 150 Rest of the world "You may make several Ricardian assumptions: these are the on two commodities, there are constant ratios of input to output what the levels of output for rice and cloth, and competition prevails in all markets. (a) Does Burma have an absolute advantage in producin rice? Cloth? (b) Does Burma have a comparative 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 or the international "terms of trade"(the international price ratio between rice and cloth)? 3. To test your understanding of how the supply curve or opportunity-cost curve for one good is derived from the sketch the U.S. supply curve for wheat
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