The opportunity cost of producing computers in terms of Web pages is 50 in Country A and is 10 in Country B. Based on the Ricardian model, what can we conclude about the pattern of trade? | Faculties

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Gopal Sharma

🎓 Tutor III ⭐ 38.32K Points

📊 International Economics

Q. The opportunity cost of producing computers in terms of Web pages is 50 in Country A and is 10 in Country B. Based on the Ricardian model, what can we conclude about the pattern of trade?

(A) Country A will export computers and import Web pages.
(B) We need to know what the relative price of computers in terms of web pages is to answer this question.
(C) We need to know what wages are to answer this question.
(D) Country A will export Web pages and import computers.

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✅ Correct Answer: (D) Country A will export Web pages and import computers.

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