1. Refer to your answers to Question 5 on your Chapter 3 Pre-lecture Assignment to answer the following questions. If you are not confident your answer to Question 5 on your Chapter 3 Pre-lecture, be sure to double check them. It is likely that they were not graded for correctness on the pre-lecture so don't assume that they are correct. You may write your answers on this page. Who has the absolute advantage in producing boats? How do you know this? Explain using the numbers from the statement of the problem or calculations you made. b. Plug in your MOCs from the Chapter 3 pre-lecture assignment into the following table. They will be graded for correctness here. Your answers to the next questions need to be justified with the numbers in the table, so be sure to enter your answers with care. I will grade your answers for parts cof based on this table. You do not need to fill in the Per Unit Trade Price. That row is there for part f if you want to use it for reference only. It is just like what I have in the lecture. Marginal Opportunity Cost to produce: one Boat one Car 135 45 Germany =3 cars 45 =.333 boats 135 Per Unit Trade Price (use this in part f.) 60 30 Italy =2 cars -= 5 boats 30 60 c. Refer to your answer in the gray box above. Fill in the blanks in the following sentences: "When increases production by one boat, it gives up production of _ cars." "When increases production by one car, it gives up production of boats." d. Who has the comparative advantage in producing boats? How you know this? Support your answer with numbers from your table above in part b. e. Who should specialize in producing boats? Why?f. Who should specialize in producing cars? Why? Support your answer with numbers from your table in part b. g. First assume that the two countries are rational and would specialize in the good that you identified in parts d. and e. Each of the next two questions have a proposed trade. Think about what the per unit trade amounts are and answer the following questions: i. Would both countries agree to trade 1 car for 1 boat? If they don't make the trade, who does not agree and why? Explain your answers using the numbers from the statement of the problem or calculations you made. i. Would both agree to trade 10 cars for 4 boats? If they don't make the trade, who does not agree and why? Explain your answers using the numbers from the statement of the problem or calculations you made