In the Context of the Classical (Ricardo) Model, Explain, for Each

question 2

Essay

In the context of the Classical (Ricardo) model, explain, for each of the following two statements, why the statement is either TRUE or FALSE.
(a) "If country A can produce all goods with less labor time per unit of
output than can country B, then there can be no reason for country A
to trade with country B - country A would always maximize its own
welfare by satisfying its consumption desires for all goods from its
own production."
(b) "If country I's workers have greater productivity in all industries
than country II's workers, then workers in country I will be paid a
higher wage rate than workers in country II."

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