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1. The outputs per laborer per day in the production of computers and autos in Nation 1 and in Nation 2 are given in the

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1. The outputs per laborer per day in the production of computers and autos in Nation 1 and in Nation 2 are given in the table below. Output per Laborer Nation 1 Nation 2 Autos 2 4 Computers 6 4 3) Which nation has the absolute advantage in each good? b) Fill in the blanks in the table below, assuming that one unit of labor is transferred in each country towards the good in which it has the absolute advantage. Changes in Production from Reallocating One Unit of Labor Nation 1 Nation 2 World c} W Will both Change in Production of Computers _ _ _ nations gain if 4 autos can be exchanged for 4 computers? d) Will both nations gain if 2 autos can be exchanged for 6 computers? e) Will both nations gain if 2 autos can be exchanged for 4 computers? f) What do your answers suggest about the effect of the terms of trade on the gains from trade for each nations and what a mutually beneficial terms of trade might be g) What is the opportunity cost of automobiles in each country? b) What is the opportunity cost of computers in each country

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