If a country has a comparative advantage in producing rice and a
comparative disadvantage in producing pencils, does the Ricardian model
predict that the real wage in rice production will fall and the real wage in
pencil production will rise as a result of international trade?

Question

Quizplus · Accepted Answer

The Answer of If a country has a comparative advantage in producing rice and a
comparative disadvantage in producing pencils, does the Ricardian model
predict that the real wage in rice production will fall and the real wage in
pencil production will rise as a result of international trade?

If a Country Has a Comparative Advantage in Producing Rice