6. Consider a time-phased Ricardian model in which1 13 2(a) If i = i* = 0, which country exports which good?(b) If n, = n; = 3, n2 n; = 1, i = 0.4, i 0.1, what is the pattern of trade?%3D7. ►►If the periods of production between the two industries are the same in the home country,will M RT = M RS in autarky?

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6. Consider a time-phased Ricardian model in which (a) If i i=0, which country exports which good? 23-8 a12 012 (b) If n₁ =n=3, n = n = 1, i=0.4, 0.1, what is the pattern of trade?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Question

6. Consider a time-phased Ricardian model in which
1 1
3 2
(a) If i = i* = 0, which country exports which good?
(b) If n, = n; = 3, n2 n; = 1, i = 0.4, i 0.1, what is the pattern of trade?
%3D
7. ►►If the periods of production between the two industries are the same in the home country,
will M RT = M RS in autarky?

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Step 2: Determine the exports of the Countries

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Step 3: Determine the trade patterns

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