Multiple Choice
Given the following Ricardo-type table showing the amount of labor input required to produce one unit of output of each of the two goods in each of the two countries:
Suppose that the U.S. wage rate is $60 per day and that the exchange rate is $2 = £1 (or £0.5 = $1) . In this situation, the lower limit for the U.K. wage rate in order to have two-way trade would be __________ per day.
A) £18
B) £20
C) £45
D) £50
Correct Answer:

Verified
Correct Answer:
Verified
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