Advantage according to the classical model

Assignment Help Macroeconomics

Reference no: EM13752538

Two countries: Italy and Greece producing olives

Italy Greece

Output: 150 units Output: 80 units

Labor : 30 workers Labor: 40 workers

Wages: $5 Wages: $2

Exports: $100 Exports: $50

A real word comparative advantage for Italy over Greece in olives is measured by a ratio of Italian exports of olives to Greek exports that exceeds one. Calculate this ratio and consider it the real world.
Determine the comparative advantage according to the classical model. Is the classical model's prediction of comparative advantage consistent with the comparative advantage in the real world given by the above example?

Reference no: EM13752538

Questions Cloud

Describe the required elements of a communication plan : Explain how change control is implemented in the information technology processes. Analyze the required elements of a communication plan

Why is 1776 an important year in american history : Why is 1776 an important year in American history?

Privatizing the u.s. money supply : Would it be possible to privatize the money supply in the United States completely? In doing so, what would be the primary obstacle to overcome in implementing such a policy?

Analyze a government intervention into health care businesse : Analyze a government intervention into health care businesses, meant to ensure that health care and patient information is secure and thus to minimize information breaches and technology failures

Advantage according to the classical model : Determine the comparative advantage according to the classical model. Is the classical model's prediction of comparative advantage consistent with the comparative advantage in the real world given by the above example?

Identification of the successful characteristic of establish : Identification of the difficulties the managers may be having in establishing self-directed, high-performing teams. Identification of the successful characteristic of establishing self-directed, high-performing teams

Export supply chain management skills set : Examine the impact of import/export compliance and security management post 9/11 - Evaluate export management in terms of INCO, documentation, and export supply chain management skills set.

Budgeted cash receipts for october : Farris estimates that it will collect 30% in the month of sale, 50% in the month after the sale, and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts. How much are Farris Co.'s budgeted cash receip..

Create a flowchart to show the processing : Flowchart and sample code in C#-Create a flowchart to show the processing that will take place for the implementation of a hash structure

User Account

All Pages