Chapter 3Labor Productivity(劳动生产率) and Comparative.ppt

The movement of labor to whichever sector pays the higher wages. If PC / aLC （小时工资） PW / aLW , we can get PC / PW （相对价格） aLC / aLW（机会成本） . If PC / PW aLC / aLW, it will specialize in the production of cheese. If PC / PW aLC / aLW , it will specialize in the production of wine. －If PC / PW =aLC / aLW , both products will be produced. －In the absence of trade, both goods are produced, and therefore PC / PW = aLC /aLW Why? After we learned a one-factor economy, now we should deal with Trade in a One-Factor World 1+2+2 Model.