1. Answer the question below based on the information in the following table. The numbers indicate hours of labor per unit of output. Table 1: Country/ Good Cars Motorcycles China 50 35 Vietnam 60 40 Select the true sentence. (a) China has an absolute advantage in the production of cars. (b) China has an absolute advantage in the production of motorcycles (c) Vietnam has a comparative advantage in the production of motorcycles. (d) All of the above. 2. Consider the case of two countries, both producing goods X and Y, and only one factor of production: labor. Which of the following is true, according to the Ricardian model? (a) Two countries will have no incentive to trade when their production possibility frontiers are the same. (b) Two countries will have no incentive to trade when their production possibility frontiers are parallel to each other. (c) Answers (a) and (b) are correct. (d) None of the above