Question

If a country has a comparative advantage in producing rice and a comparative disadvantage in producing...

If a country has a comparative advantage in producing rice and a comparative disadvantage in producing pencils, does the Ricardian model predict that the wage in rice production will be lower than the wage in pencil production as a result of international trade?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If a country has a comparative advantage in the production of a good, then that country...
If a country has a comparative advantage in the production of a good, then that country A)also has an absolute advantage in producing that good. B)should allow another country to specialize in the production of that good. C)has a lower opportunity cost in the production of that good. D)all of the above
Suppose a country with two types of workers, high skilled and low skilled, has a comparative...
Suppose a country with two types of workers, high skilled and low skilled, has a comparative advantage in biotechnology and a comparative disadvantage in shoes. Under the Stolper-Samuelson theorem, which predicts increasing inequality due to international trade, expansion of trade will result in:
When a country has a comparative advantage in the production of a good it mean that...
When a country has a comparative advantage in the production of a good it mean that it can produce this good at a lower apportunity cost than it trading
What is the difference between absolute and comparative advantage? If Country A has an absolute advantage...
What is the difference between absolute and comparative advantage? If Country A has an absolute advantage in computers and food over Country B, Country A has a comparative advantage in computers and Country B has a comparative advantage in food, what should happen in terms of specialization and trade?
Which of the following is true? a) If one country has an absolute disadvantage in one...
Which of the following is true? a) If one country has an absolute disadvantage in one commodity, it must also have a comparative disadvantage in that commodity. b) If one country has a comparative advantage in one commodity, it must also have an absolute advantage in that commodity. c) If one country has absolute advantages in producing all commodities, it must specialize in and export all the commodities. d) Each country can gain from specializing in and exporting the commodity...
True or False? 1) If Country A is absolutely better at producing everything than Country B,...
True or False? 1) If Country A is absolutely better at producing everything than Country B, then there is no incentive for Country A to engage in trade with Country B. 2) If Tom has a comparative advantage in producing corn then he must also have an absolute advantage in producing corn. 3) If Joe can produce a good at a lower opportunity cost than Fred, then Joe must have an absolute advantage in producing this good. 4) Consider the...
If a country has a comparative advantage in the production of a good, then its resources...
If a country has a comparative advantage in the production of a good, then its resources are better suited to the production of that good than the resources of other countries. Group of answer choices True False
1. When Home has comparative advantage over Foreign in cloth, A. The Autarky relative price of...
1. When Home has comparative advantage over Foreign in cloth, A. The Autarky relative price of cloth in terms of wine is lower at Home than in Foreign B. Foreign must have comparative advantage over Home in wine C.Home will specialize in producing cloth when there is free trade D. Both (A) and (B) are correct E. (A), (B), and (C) are correct. 2. In the Ricardian Model, with countries Home and Foreign and with two goods under trade, assume...
Comparative Advantage There are two countries in the world. There are also only two different types...
Comparative Advantage There are two countries in the world. There are also only two different types of goods produced, food and clothing. Each country has the same amount of “inputs” (i.e. labor, capital, raw materials, etc.), which amounts to 100,000 units of input. Below is a chart that lists out how many units of output each country could create if they created just one type of good. For example, if Country A produced ONLY food, then with 100,000 units of...
32.   Japan and China produce guns and rice. The country with the lowest opportunity cost of...
32.   Japan and China produce guns and rice. The country with the lowest opportunity cost of guns (in terms of rice) will A.  import guns. B.  have a comparative advantage in guns. C.  have an absolute advantage in guns. D.  have a comparative advantage in rice. 33.   If nations begin to specialize in production for the purpose of trade, A.  the utility from consumption will increase, but not the total output. B.  total world output will increase, as well as well being from consumption. C.  total world...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT