Marginal Product of Labor Labor Force Shirts Apples Home MPLs = 2 MPLA = 5 L =100 Foreign MPLs* = 1 MPLA* = 2 L* = 240 For Questions 12-15 below,...
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These questions help you review the Introduction and the Ricardian mode. For each statement, determine

whether it's True or False, and then explain why.

phpVupTKp.png

phpVupTKp.png

Marginal Product of Labor
Labor Force
Shirts
Apples
Home
MPLs = 2
MPLA = 5
L =100
Foreign
MPLs* = 1
MPLA* = 2
L* = 240
For Questions 12-15 below, assume that Pshirts/PanpiesI = 1 1/5.
12. Graph the Home country's CPF under free trade. Please label both intercepts and the
slope. You can either draw a new picture, or in the same picture as question 5 above.
13. The real wage for shirts in the Home country is 25/11.
14. The ratio of the Home country's wage to the Foreign country's wage is 22/5.
15. The Foreign country's trade balance (TB) is 0.

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