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Ricardian economy produces two goods

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Assume that a Ricardian economy produces two goods: corn and wheat, using only labour. This economy produces 0.5 ton of corn or 1 ton of wheat with a day of a worker's labour. Without trade (in autarky), its daily production is 10 tons of corn and 20 tons of wheat. This economy's labour endowment is of 50 workers. True or False? Explain.

Reference no: EM132364841

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