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This exercise applies the basic Ricardian model of one factor (labor) and two goods to the national economy of Home. Assume the following: als =
This exercise applies the basic Ricardian model of one factor (labor) and two goods to the national economy of Home. Assume the following: als = number of labor hours needed to produce a unit of steel in Home; alc = number of labor hours needed to produce a unit of calico in Home; Ps = the price per ton of steel; Pc = the price per bolt of calico. Which of the following conditions signifies that workers in Home will all want to work in the calico sector? O A. Ps/Pc >aslac OB s>ALC OC. Pc/Ps a claus OD. Ps > PC
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