Given the information in the table above. If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth?
What will be an ideal response?
One half a widget.
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Refer to Figure 11.4. Which diagram illustrates the effect of a decrease in government spending?
A) A B) B C) C D) D
Explain why a tax increase on cigarettes in one state might not lead to a substantial price increase for all consumers in that state
What will be an ideal response?
Keynes believed the government should
a. control wages and prices to ensure full employment. b. ensure that workers earned high wages and full employment. c. ensure that aggregate demand was high enough to ensure full employment. d. ensure aggregate demand was high enough to control the economy.
People supply their resources to the lowest-paying alternative, other things constant
Indicate whether the statement is true or false