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Comparative advantage in producing coffee

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Suppose that a particular country had a linear PPF over Shoes (on the vertical axis) and coffee (on the horizontal axis), with a slope of 2.5 in absolute value. Which of the following CANNOT be true if it engages with trade with another country based on the Ricardian model of trade?

When the country trades, its consumption possibilities now has an absolute slope of 3, because it has a comparative advantage in producing coffee

The other country has a comparative advantage in producing coffee so when they trade the country in the question imports coffee

The country will have a consumption possibilities from trade with an absolute slope of 2 because it has a comparative advantage in producing coffee

Wages will go up for coffee production in the other country since the country in question has a comparative advantage in producing shoes

Reference no: EM131833395

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