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170. In a two-sectors (x1 and x2) Ricardian economy, with L=150 and aL1=10 and aL2=5, consumer tastes are represented by the proportion x1 = x2. If p * 1 /p* 2-1/2 is the international terms of trade, with free trade, with respect to autarchy, the consumption of x2 will increase by

170. In a two-sectors (x1 and x2) Ricardian economy, with L=150 and aL1=10 and aL2=5, consumer tastes are represented by the proportion x1 = x2. If p * 1 /p* 2-1/2 is the international terms of trade, with free trade, with respect to autarchy, the consumption of x2 will increase by

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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170. In a two-sectors (x1 and x2) Ricardian economy, with L=150 and aL1=10 and aL2=5, consumer tastes are represented by the proportion x1 = x2. If p * 1 /p* 2-1/2 is the international terms of trade, with free trade, with respect to autarchy, the consumption of x2 will increase by
Transcribed Image Text:170. In a two-sectors (x1 and x2) Ricardian economy, with L=150 and aL1=10 and aL2=5, consumer tastes are represented by the proportion x1 = x2. If p * 1 /p* 2-1/2 is the international terms of trade, with free trade, with respect to autarchy, the consumption of x2 will increase by
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