2. The autarky terms of trade in the Ricardian model is defined as: The terms at which the country exports the commodity it specializes in Equal to the ratio of the wages paid to the workers of the two industries The ratio of the unit labor requirements in the two industries The terms at which the country imports the commodity it specializes in Equal to the marginal cost of producing the commodity it specializes in
Added by Julian B.
Step 1
- In the Ricardian model, autarky terms of trade refer to the relative prices of goods in a country when it is not engaged in international trade. This is determined by the ratio of the unit labor requirements in the two industries. Show more…
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