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:
A) The United Kingdom has an absolute advantage in neither good.
B) The United States has a comparative advantage in wheat.
C) The United States has a comparative advantage in both goods.
D) A post-trade price ratio (terms of trade) of 1 wheat:1.5 clothing is a feasible
Equilibrium post-trade price ratio.
Correct Answer:

Verified
Correct Answer:
Verified
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