Question: This exercise applies the basic Ricardian model of one factor (labor) and two goods to the national economy of Home. Assume the following: als =

This exercise applies the basic Ricardian model of one factor (labor)

This exercise applies the basic Ricardian model of one factor (labor) and two goods to the national economy of Home. Assume the following: als = number of labor hours needed to produce a unit of steel in Home; alc = number of labor hours needed to produce a unit of calico in Home; Ps = the price per ton of steel; Pc = the price per bolt of calico. Which of the following conditions signifies that workers in Home will all want to work in the calico sector? O A. Ps/Pc >aslac OB s>ALC OC. Pc/Ps a claus OD. Ps > PC

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