Relative Home Unit Labor Requirement (aLi) Foreign Unit Labor Requirement (a*Li) Good Home Productivity Advantage (a Li/aLi) 10 10 Apples 40 Bananas 3 12 4. Caviar 12 2. Dates 12 6. 0.75 Enchiladas Given the information above in the context of a more than two good Ricardian model and the fact that the relative home wage was 4 and the nominal foreign wage was $3, what would be the world relative price of bananas be with world equilibrium in the labor market? A. $3 B. $4 C. $5 D. $12 E. None of the above.

Relative Home Unit Labor Requirement (aLi) Foreign Unit Labor Requirement (a*Li) Good Home Productivity Advantage (a Li/aLi) 10 10 Apples 40 Bananas 3 12 4. Caviar 12 2. Dates 12 6. 0.75 Enchiladas Given the information above in the context of a more than two good Ricardian model and the fact that the relative home wage was 4 and the nominal foreign wage was $3, what would be the world relative price of bananas be with world equilibrium in the labor market? A. $3 B. $4 C. $5 D. $12 E. None of the above.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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This question is from Principles of Eco2 class.
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G6
correctly explains question
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