Professional Documents
Culture Documents
Labor Productivity
and Comparative
Advantage: The
Ricardian Model
Total amount of
aLCQC + aLWQW L
labor resources
no wine is produced.
Cheese Wine
Home aLC = 1 hour/lb aLW = 2 hours/gallon
Source: International Monetary Fund, Bureau of Labor Statistics, and The Conference
Board
Copyright 2012 Pearson Education. All rights reserved.
3-64
Do Wages Reflect Productivity?
(cont.)