Suppose countries c and d use only labour as an input and


Suppose Countries C and D use only labour as an input and produce only tables and tents. In A, a worker in a week could produce 4 tables or 2 tents. In B, a worker in a week could produce 6 tables. Initially the countries do not trade, and then trade opens up. Under which circumstances will country C export tables?

a) Under no circumstances.

b) If a worker in country D could produce fewer than 3 tents a week.

c) If a worker in country D could produce 3 tents a week.

d) If a worker in country D could produce more than 3 tents a week.

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Macroeconomics: Suppose countries c and d use only labour as an input and
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