Question: Consider a Ricardian framework with two countries, Italy and Czech Republic, and two products, beer and wine. In autarky, the relative price of beer in

Consider a Ricardian framework with two countries, Italy and Czech Republic, and two products, beer and wine.

In autarky, the relative price of beer in Italy is 4/5, while in Czech Republic it is 2/5.

At the trade equilibrium,

Group of answer choices

the world relative price of beer can take values from 2/5 to 4/5, depending on the relative size of the countries.

there is no trade between Italy and Czech Republic

Italian workers receive higher real wage in terms of wine

Czech Republic imports beer

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