For the next two questions, consider a country that produces…
For the next two questions, consider a country that produces two goods: X and Y with only labor. Marginal Products of labor are constant. The PPF is graphed with the quantity of good Y on the y-axis and the quantity of good X on the x-axis.
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Use the following information to answer questions 9-12. Make all of the regular assumptions of the 2 good/2 country Ricardian Model. The goods are aircraft and motor vehicles. The countries are the US and Japan. Under free trade with the United States, the wage earned if workers make motor vehicles in Japan is higher than the wage earned if workers make aircraft in Japan. Japan produces
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