Register
The two-country, multi-product model differs from the two-country, two-product model in that, in the former:__________ A) the relative wage ratio will determine the pattern of trade ( which good is exported
6,396 views
6 votes
6 votes
The two-country, multi-product model differs from the two-country, two-product model in that, in the former:__________

A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country).
B) which country will export which product is determined entirely by labor productivity data.
C) full specialization is likely to hold in equilibrium.
D) none of the goods are potentially nontraded.
E) domestic relative prices are not relevant.

User Ginsengtang
by
2.8k points

1 Answer

11 votes
11 votes

Answer: The relative wage ratio will determine the pattern of trade ( which good is exported by which country

Step-by-step explanation:

A two-country, two-product world, explains two countries that trade with each other such that one has a comparative advantage over the other in the production of a good while the other country has a comparative advantage in the production of the other product.

The two-country, multi-product model differs from the two-country, two-product model in that, in the former the relative wage ratio will determine the pattern of trade ( which good is exported by which country).

Therefore, the correct option is A.

User Tida
by
2.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!