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1. In a Ricardian world, Home and Foreign produce two goods, Apples and Bananas. In autarky, both countries produce both goods. The following information is

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1. In a Ricardian world, Home and Foreign produce two goods, Apples and Bananas. In autarky, both countries produce both goods. The following information is available: No-trade Equilibrium Home Apples Bananas WA = 8 M PLA = 3 PB = 2 No-trade Equilibrium Foreign Apples Bananas WB =6 MPLB = 1 P* = 3(e) In the trade equilibrium, do Foreign workers earn more or less than those at Home (in terms of ability to purchase goods)

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