UCB The Ricardian Model Relative Price Worksheet

1. The relative price of S (in terms of T), PS/PT, is
(a) 2.
(b) ½.
(c) 500.
(d) 1000.
2. The relative price of T (in terms of S), PT/PS, is
(a) 2.
(b) ½.
(c) 500.
(d) 1000.
3. If the relative price of T were to increase, then the price line would
(a) shift out in a parallel fashion.
(b) shift in a parallel fashion.
(c) become steeper.
(d) become flatter.
4. In autarky, when a country maximizes its utility, its consumption point is
(a) below the production possibility frontier.
(b) on the production possibility frontier.
(c) above the production possibility frontier.
(d) cannot tell without more information.
Econ 611/811 – Homework 1
The Ricardian Model
Due Date: Sep 16, 2021
Dr. Chenghao Hu
Name______________________________