Ricardo's theory of trade is based on_ ratio). (A: productivity of labor; B: opportunity cost; C: capital labor

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5. Graphical show the effects of the movement of surplus labor in the Lewis model. Plot only the marginal product in the two sectors. Write a brief note explaining the movement.

Writing in 1776, Adam Smith was concerned not only with the profound effects of the division of labor on productivity (as your textbook notes) but also its stultifying effect on the human capacity. InThe Wealth of Nations, Smith warned that performing a few simple operations over and over again could render any worker, no matter his or her native intelligence, “stupid and ignorant.” a. Does the division of labor in today’s economy continue to have both these effects? b. What are the policy implications? (Radical)