1: Consider two countries, Home and Foreign. Each country produces two goods, guitars and banjos, using one factor of production, labor. Home has 600 units of labor available while Foreign has 400 units of labor available. Home's unit labor requirement in guitar production is 2 and its unit labor requirement in banjos is 3. Foreign's unit labor requirement in guitar production is 2 and its unit labor requirement in banjos is 4.

a. Graph the PPFs for the Home and Foreign economies.

b. What is the opportunity cost of guitars in terms of banjos in both Home and Foreign?

c. Draw the world relative supply curve.