Note: same information for questions 4-12, except where othe…
Note: same information for questions 4-12, 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 year of labor. (Thus, for example, to make a TV series in Country A it takes 30 workers working a full year, or one worker working 30 years, and so on.) Country A has 12,000 units of labor and country B has 8,000 units of labor. The two countries are engaged in free and costless trade. Country A Country B TV Series 30 10 Movies 20 5 Country B has absolute advantage in