Consider a Ricardian trade model where both countries have expenditure share q = 0.2 on manufactures, Country 1 has Am = 1 and As = 4 and L = 100 while Country 2 has Am* = As* = 0.5 and L* = 200. With free trade, which of the following is true? Group of answer choices - The relative wage is w/w* = 8 - Country 1 produces 400 services and exports 80 services - Country 2 produces 100 manufactures and exports 80 manufactures - All of the other options

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