The opportunity cost of producing computers in terms of Web pages is 50 in Country A and is 10 in Country B. Based on the Ricardian model, what can we conclude about the pattern of trade?

Related MCQs

• Country A has 100 units of labor and Country B has 200 units of labor. Both countries produce computers and Web pages. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 Assume free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to Web pages will be:
• Country A and Country B produce computers and Web sites. The unit labor requirements are given in the table below: Computers Web pages Country A 50 1 Country B 100 1 At which of the following relative prices (computers in terms of Web sites) will Country B produce both goods under free trade?
• Country A has 5000 units of labor. It takes 50 units of labor to produce one computer and 1 unit to create a Web page. What is the opportunity cost of a Web page in terms of computers?
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• In the Ricardian model, if a country's trade is restricted, this will cause all except which?
• If a nations terms of trade is ½ its trade partners terms of trade is
• As a result of trade, specialization in the Ricardian model tends to be
• A nation engaging in trade according to the Ricardian model will find its consumption bundle
• The Ricardian model exhibits gains from trade:
• In the Ricardian model, when two countries trade freely, the relative price of the goods they are trading is determined by: