Given the following Ricardo-type table showing the amount of labor input needed to produce one unit of

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Given the following Ricardo-type table showing the amount of labor input needed to produce one unit of output of the two goods in the two countries:

Steel Cloth

United Kingdom 4 days 8 days

Germany 6 days 9 days

a. The United Kingdom has an absolute advantage in both goods and a comparative advantage in cloth.

b. The pre-trade price ratio in the United Kingdom is 1 steel : 2 cloth.

c. The United Kingdom has an absolute advantage in neither good but a comparative advantage in steel.

d. The pre-trade price ratio in Germany is 1 cloth : 1.5 steel.

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Financial Accounting

ISBN: 9781260006452

17th Edition

Authors: Jan Williams, Susan Haka

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Posted Date: Dec 21, 2022 11:16 PM

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Given the following Ricardo-type table showing the amount of labor input needed to produce one unit of

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Financial Accounting

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