Problem
Ricardian Model:
1) What information do you need to have?
2) How do you plot PPF of Home and Foreign: x-intercept, y-intercept, slope. What do these mean?
3) How do you ?gure relative prices in Home and Foreign?
4) How do relative prices relate to the PPF slope? To opportunity costs?
5) What information does the indifference curve map provide and why is it used?