Note: same information for questions 4-11, except where otherwise noted. The world is composed of two countries, Country A and Country B. They use labor to produce two goods, TV Series and Movies. All of the assumptions of the Ricardian Model hold. The following table shows the unit labor inputs used to make each good in each country, where one unit is one hour of labor. (Thus, for example, to make a TV series in Country A it takes 30 hours of labor, and so on.) Country A has 12,000 units of labor and country B has 24,000 units of labor. The two countries are engaged in free and costless trade. Country A Country B TV Series 30 5 Movies 6 2   Suppose there is free and costless trade between the two countries and that Country B does not gain by trading. Enter a reasonable world relative price of TV series in terms of movies (that is, a reasonable price ratio PTV / PM). Note: if the answer is an exact number, only the exact number is accepted; if the answer is a range, then any number within that range is accepted.

Note: same information for questions 4-11, except where otherwise noted. The world is composed of two countries, Country A and Country B. They use labor to produce two goods, TV Series and Movies. All of the assumptions of the Ricardian Model hold. The following table shows the unit labor inputs used to make each good in each country, where one unit is one hour of labor. (Thus, for example, to make a TV series in Country A it takes 30 hours of labor, and so on.) Country A has 12,000 units of labor and country B has 24,000 units of labor. The two countries are engaged in free and costless trade. Country A Country B TV Series 30 5 Movies 6 2   Country A has absolute advantage in

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I am now going to show my sheet of scratch paper with my calculations to the camera, both sides, before submitting this test and leaving this Canvas site.

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